0000704440 2026-01-01 2026-06-30 0000704440 2026-08-05 0000704440 2026-06-30 0000704440 2025-12-31 0000704440 2026-04-01 2026-06-30 0000704440 2025-04-01 2025-06-30 0000704440 2025-01-01 2025-06-30 0000704440 2024-12-31 0000704440 2025-06-30 0000704440 us-gaap:CommonStockMember 2025-12-31 0000704440 us-gaap:AdditionalPaidInCapitalMember 2025-12-31 0000704440 us-gaap:RetainedEarningsMember 2025-12-31 0000704440 us-gaap:TreasuryStockCommonMember 2025-12-31 0000704440 us-gaap:CommonStockMember 2026-03-31 0000704440 us-gaap:AdditionalPaidInCapitalMember 2026-03-31 0000704440 us-gaap:RetainedEarningsMember 2026-03-31 0000704440 us-gaap:TreasuryStockCommonMember 2026-03-31 0000704440 2026-03-31 0000704440 us-gaap:CommonStockMember 2024-12-31 0000704440 us-gaap:AdditionalPaidInCapitalMember 2024-12-31 0000704440 us-gaap:RetainedEarningsMember 2024-12-31 0000704440 us-gaap:TreasuryStockCommonMember 2024-12-31 0000704440 us-gaap:CommonStockMember 2025-03-31 0000704440 us-gaap:AdditionalPaidInCapitalMember 2025-03-31 0000704440 us-gaap:RetainedEarningsMember 2025-03-31 0000704440 us-gaap:TreasuryStockCommonMember 2025-03-31 0000704440 2025-03-31 0000704440 us-gaap:CommonStockMember 2026-01-01 2026-03-31 0000704440 us-gaap:AdditionalPaidInCapitalMember 2026-01-01 2026-03-31 0000704440 us-gaap:RetainedEarningsMember 2026-01-01 2026-03-31 0000704440 us-gaap:TreasuryStockCommonMember 2026-01-01 2026-03-31 0000704440 2026-01-01 2026-03-31 0000704440 us-gaap:CommonStockMember 2026-04-01 2026-06-30 0000704440 us-gaap:AdditionalPaidInCapitalMember 2026-04-01 2026-06-30 0000704440 us-gaap:RetainedEarningsMember 2026-04-01 2026-06-30 0000704440 us-gaap:TreasuryStockCommonMember 2026-04-01 2026-06-30 0000704440 us-gaap:CommonStockMember 2025-01-01 2025-03-31 0000704440 us-gaap:AdditionalPaidInCapitalMember 2025-01-01 2025-03-31 0000704440 us-gaap:RetainedEarningsMember 2025-01-01 2025-03-31 0000704440 us-gaap:TreasuryStockCommonMember 2025-01-01 2025-03-31 0000704440 2025-01-01 2025-03-31 0000704440 us-gaap:CommonStockMember 2025-04-01 2025-06-30 0000704440 us-gaap:AdditionalPaidInCapitalMember 2025-04-01 2025-06-30 0000704440 us-gaap:RetainedEarningsMember 2025-04-01 2025-06-30 0000704440 us-gaap:TreasuryStockCommonMember 2025-04-01 2025-06-30 0000704440 us-gaap:CommonStockMember 2026-06-30 0000704440 us-gaap:AdditionalPaidInCapitalMember 2026-06-30 0000704440 us-gaap:RetainedEarningsMember 2026-06-30 0000704440 us-gaap:TreasuryStockCommonMember 2026-06-30 0000704440 us-gaap:CommonStockMember 2025-06-30 0000704440 us-gaap:AdditionalPaidInCapitalMember 2025-06-30 0000704440 us-gaap:RetainedEarningsMember 2025-06-30 0000704440 us-gaap:TreasuryStockCommonMember 2025-06-30 0000704440 krmd:StockOptionsMember 2026-04-01 2026-06-30 0000704440 us-gaap:RestrictedStockUnitsRSUMember 2026-04-01 2026-06-30 0000704440 2025-01-01 2025-12-31 0000704440 country:US 2026-04-01 2026-06-30 0000704440 country:US 2025-04-01 2025-06-30 0000704440 country:US 2026-01-01 2026-06-30 0000704440 country:US 2025-01-01 2025-06-30 0000704440 us-gaap:NonUsMember 2026-04-01 2026-06-30 0000704440 us-gaap:NonUsMember 2025-04-01 2025-06-30 0000704440 us-gaap:NonUsMember 2026-01-01 2026-06-30 0000704440 us-gaap:NonUsMember 2025-01-01 2025-06-30 0000704440 krmd:FurnitureAndOfficeEquipmentMember 2026-06-30 0000704440 krmd:FurnitureAndOfficeEquipmentMember 2025-12-31 0000704440 us-gaap:LeaseholdImprovementsMember 2026-06-30 0000704440 us-gaap:LeaseholdImprovementsMember 2025-12-31 0000704440 krmd:ManufacturingEquipmentAndToolingMember 2026-06-30 0000704440 krmd:ManufacturingEquipmentAndToolingMember 2025-12-31 0000704440 krmd:StockOptionPlan2015Member 2026-01-01 2026-06-30 0000704440 krmd:StockOptionPlan2021Member 2026-01-01 2026-06-30 0000704440 krmd:OmnibusEquityIncentivePlan2024Member 2026-01-01 2026-06-30 0000704440 krmd:OmnibusEquityIncentivePlan2024Member 2026-06-30 0000704440 krmd:NonEmployeeDirectorAndBoardAdvisorMember 2026-01-01 2026-06-30 0000704440 srt:BoardOfDirectorsChairmanMember 2026-01-01 2026-06-30 0000704440 krmd:TimeVestingStockOptionsMember 2026-04-01 2026-06-30 0000704440 krmd:TimeVestingStockOptionsMember 2026-01-01 2026-06-30 0000704440 krmd:TimeVestingStockOptionsMember 2026-06-30 0000704440 us-gaap:RestrictedStockMember 2026-01-01 2026-06-30 0000704440 krmd:RestrictedStockAwardsMember 2026-04-01 2026-06-30 0000704440 krmd:RestrictedStockAwardsMember 2026-01-01 2026-06-30 0000704440 krmd:TimeVestingStockOptionsMember 2025-12-31 0000704440 krmd:TimeVestingStockOptionsMember krmd:ExercisePrice1Member 2026-06-30 0000704440 krmd:TimeVestingStockOptionsMember krmd:ExercisePrice1Member 2026-01-01 2026-06-30 0000704440 krmd:TimeVestingStockOptionsMember krmd:ExercisePrice2Member 2026-06-30 0000704440 krmd:TimeVestingStockOptionsMember krmd:ExercisePrice2Member 2026-01-01 2026-06-30 0000704440 krmd:TimeVestingStockOptionsMember krmd:ExercisePriceMember 2026-06-30 0000704440 krmd:TimeVestingStockOptionsMember krmd:ExercisePriceMember 2026-01-01 2026-06-30 0000704440 krmd:RestrictedStockAwardsMember 2025-12-31 0000704440 krmd:RestrictedStockAwardsMember 2026-06-30 0000704440 us-gaap:RevolvingCreditFacilityMember krmd:DomesticBankLenderMember 2024-03-08 0000704440 krmd:TermLoanFacilityMember krmd:DomesticBankLenderMember 2024-03-08 0000704440 us-gaap:RevolvingCreditFacilityMember krmd:DomesticBankLenderMember 2026-03-30 0000704440 krmd:TermLoanFacilityMember krmd:DomesticBankLenderMember 2026-03-30 0000704440 2026-03-30 iso4217:USD shares iso4217:USD shares pure false --12-31 2026 Q2 0000704440

10-Q true 2026-06-30 false 0-12305 KORU MEDICAL SYSTEMS, INC. DE 13-3044880 100 Corporate Drive Mahwah NJ 07430 (845) 469-2042 Common stock, $0.01 par value KRMD NASDAQ Yes Yes Non-accelerated Filer true false false 46171902 0.01

4018526

8287704

8872212

5027723

5972252

4511126

3678131

1064909

557653

622655

908542

19514117

19988790

3929718

4471386

562655

527949

1663318

684841

2755890

2956192

98970

27962013

28200179

2912589

2267473

2869568

4828830

11068

27722

807832

531972

148592

124913

430173

413448

7179822

8194358

71409

78675

2659265

2879224

9910496

11152257

0.01

75000000

50172404

49790934

46148690

46370432

501724

497909

56527047

52449339

4018526

3438526

6405793

3882494

-32571461

-32016832

18051517

17047922

27962013

28200179

12045420

10194800

23810044

19829875

4199212

3719031

8732447

7307771

7846208

6475769

15077597

12522104

5939986

5384148

12522165

11343522

1069200

1194789

2385804

2309398

210031

209487

407561

426844

7219217

6788424

15315530

14079764

626991

-312655

-237933

-1557660

-22343

44193

-45493

49782

-406269

59870

78951

140866

152130

-368742

123144

-310896

201912

258249

-189511

-548829

-1355748

5800

17356

5800

17356

252449

-206867

-554629

-1373104

0.01

-0.00

-0.01

-0.03

0.01

-0.00

-0.01

-0.03

46083893

46193709

46223623

46088353

49509437

46193709

46223623

46088353

-554629

-1373104

1139284

1113334

407561

426844

-406269

-2931

-944529

-805133

507257

-47979

832996

1144175

-285887

-317897

645116

-555430

275860

-122459

-16654

74833

-1959263

-288659

230776

-697807

154070

472252

461035

3400

52147

-667252

-475652

271152

81059

27536

66973

54084

-148032

-352772

-584508

-1526231

8872212

9580947

8287704

8054716

4732

7563

5800

17356

961035

500000

125628

49790934

497909

52449339

-32016832

-3882494

17047922

142568

1426

96074

97500

254053

329957 329957

1666299

-1666299

-807078

49933502

499335

54795722

-32823910

-5548793

16922354

113274

1133

96367

97500

308252

-29038 -29038

857000

-857000

125628

1256

498744

500000

252449

50172404

501724

56527047

-32571461

-6405793

18051517

49377617

493776

49581303

-29378906

-3882494

16813679

183881

1839

95661

97500

359197

227860 227860

13032

-1166237

49561498

495615

50277053

-30545143

-3882494

16345031

93961

940

96560

97500

147944

142766 142766

-206867

49655459

496555

50664323

-30752010

-3882494

16526374

<p id="xdx_809_eus-gaap--OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock_zei7NyOUB4Nc" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">NOTE 1 — NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NATURE OF OPERATIONS KORU MEDICAL SYSTEMS, INC. (the “Company,” “KORU Medical,” “KORU,” “we,” “us” or “our”) develops, manufactures and commercializes innovative and patient-centric large volume subcutaneous infusion solutions primarily for the subcutaneous drug delivery market as governed by the United States Food and Drug Administration (the “FDA”) quality and regulatory system and international standards for quality system management. The Company operates as one segment. BASIS OF PRESENTATION The accompanying financial statements should be read in conjunction with the Company’s annual report on Form 10-K for the year ended December 31, 2025 (“Annual Report”). In accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”), the Company has omitted footnote disclosures that would substantially duplicate the disclosures contained in the audited financial statements of the Company. The accompanying interim financial statements are unaudited and reflect all adjustments which are in the opinion of management necessary for a fair statement of the Company’s financial position, results of operations, and cash flows for the periods presented. All such adjustments are of a normal, recurring nature. The Company’s results of operations and cash flows for the interim periods are not necessarily indicative of the results of operations and cash flows that it may achieve in future periods. CASH AND CASH EQUIVALENTS For purposes of the statements of cash flows, the Company considers all short-term investments with an original maturity of three months or less to be cash equivalents. As of June 30, 2026 the Company held cash and cash-equivalents of $8.3 million. INTANGIBLE ASSETS Costs incurred in obtaining patents have been capitalized and are being amortized over the legal life of the patents. During the three months ended June 30, 2026, the Company acquired certain intangible assets for $961,035. This purchase was accounted for as a technology asset acquisition, as it did not meet the definition of a business combination under ASC 805. SOFTWARE DEVELOPMENT COSTS The Company capitalizes certain costs related to the development of internal-use software in accordance with ASC 350-40, Internal-Use Software. Capitalization begins when management has authorized the project, and it is probable that the software will be completed and used as intended. Capitalized costs primarily include internal labor directly associated with application development activities, such as coding, configuration, and testing. STOCK-BASED COMPENSATION The Company maintains an omnibus equity incentive plan under which it grants options and other equity incentive awards to certain executives, employees and consultants, as well as shares of common stock to non-employee directors. The fair value of each stock option grant is estimated on the date of the grant using the Black-Scholes option-pricing model. All options are charged against income at their fair value. The entire compensation expense of the award is recognized over the vesting period. Shares of stock granted for director fees are recorded at the fair value of the shares at the grant date. Restricted stock awards are equity classified and measured at the fair market value of the underlying stock at the grant date. The fair value of restricted stock awards vesting at certain market capitalization thresholds were estimated on the date of grant using the Brownian Motion Monte Carlo lattice model. The fair value of restricted stock awards with time-based vesting were estimated on the date of grant at the current stock price. The fair value of restricted stock awards vesting at certain annual sales growth thresholds were estimated as of the date of Board acknowledgement of the achievement, at the current stock price. We recognize restricted stock expense using the straight-line attribution method over the requisite service period and account for forfeitures as they occur. Restricted stock units (“RSUs”) and performance stock units (“PSUs”) are equity classified and measured at the fair market value of the underlying stock at the grant date. NET INCOME PER SHARE The following table sets forth the computation of basic and diluted income per share: Schedule of Basic and Diluted Income per Share Computation Table <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 7.5in; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="width: 40%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td id="xdx_498_20260401__20260630_zktuBAyY9iW3" style="width: 12%"> </td> <td style="width: 2%"> </td> <td style="width: 1%"> </td> <td id="xdx_491_20250401__20250630_zMUHXNDLKMV2" style="width: 12%"> </td> <td style="width: 2%"> </td> <td style="width: 1%"> </td> <td id="xdx_490_20260101__20260630_zPXMBbTZmBZ5" style="width: 12%"> </td> <td style="width: 2%"> </td> <td style="width: 1%"> </td> <td id="xdx_494_20250101__20250630_zKBTWkhzO2Q4" style="width: 12%"> </td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="5" style="border-bottom: Black 1pt solid; text-align: center">Three Months Ended June 30,</td> <td> </td> <td colspan="5" style="border-bottom: Black 1pt solid; text-align: center">Six Months Ended June 30,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2026</td> <td> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2025</td> <td> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2026</td> <td> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2025</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td>Numerator:</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr id="xdx_402_eus-gaap--NetIncomeLoss_zr2aCPzDzJH3" style="vertical-align: bottom; background-color: #E6E6E6"> <td style="padding-left: 0.2in">Net income(loss) for basic and diluted earnings per share </td> <td> </td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">252,449</td> <td> </td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(206,867</td> <td style="border-bottom: White 2.25pt double">)</td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(554,629</td> <td style="border-bottom: White 2.25pt double">)</td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(1,373,104</td> <td style="border-bottom: White 2.25pt double">)</td></tr> <tr id="xdx_40C_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_pid_uShares_zQQlIREqYpD8" style="vertical-align: bottom"> <td style="padding-left: 0.2in">Denominator for basic income per share weighted average shares</td> <td> </td> <td style="border-bottom: Black 2.25pt double"> </td> <td style="border-bottom: Black 2.25pt double; text-align: right">46,083,893</td> <td style="border-bottom: white 2.25pt double"> </td> <td style="border-bottom: Black 2.25pt double"> </td> <td style="border-bottom: Black 2.25pt double; text-align: right">46,193,709</td> <td style="border-bottom: white 2.25pt double"> </td> <td style="border-bottom: Black 2.25pt double"> </td> <td style="border-bottom: Black 2.25pt double; text-align: right">46,223,623</td> <td style="border-bottom: white 2.25pt double"> </td> <td style="border-bottom: Black 2.25pt double"> </td> <td style="border-bottom: Black 2.25pt double; text-align: right">46,088,353</td> <td style="border-bottom: white 2.25pt double"> </td></tr> <tr style="vertical-align: bottom; background-color: #E8E8E8"> <td>Effect of dilutive securities:</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr id="xdx_409_eus-gaap--IncrementalCommonSharesAttributableToShareBasedPaymentArrangements_pid_uShares_zEpgT1C1vxk6" style="vertical-align: bottom"> <td>Options, restricted stock units, and warrants</td> <td> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">3,425,544</td> <td> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">—</td> <td> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">—</td> <td> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">—</td> <td> </td></tr> <tr id="xdx_400_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_pid_uShares_zZKCqr91Ucl2" style="vertical-align: bottom; background-color: #E6E6E6"> <td>Denominator for diluted income per share weighted average shares</td> <td> </td> <td> </td> <td style="text-align: right">49,509,437</td> <td> </td> <td> </td> <td style="text-align: right">46,193,709</td> <td> </td> <td> </td> <td style="text-align: right">46,223,623</td> <td> </td> <td> </td> <td style="text-align: right">46,088,353</td> <td> </td></tr> <tr id="xdx_401_eus-gaap--EarningsPerShareBasic_pid_uUSDPShares_zwnZiR0NehFe" style="vertical-align: bottom"> <td>Basic income per share</td> <td> </td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">0.01</td> <td style="border-bottom: White 2.25pt double"> </td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(0.00</td> <td style="border-bottom: White 2.25pt double">)</td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(0.01</td> <td style="border-bottom: White 2.25pt double">)</td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(0.03</td> <td style="border-bottom: White 2.25pt double">)</td></tr> <tr id="xdx_40D_eus-gaap--EarningsPerShareDiluted_pid_uUSDPShares_zyNN3PpNMEsa" style="vertical-align: bottom; background-color: #E6E6E6"> <td>Diluted income per share</td> <td> </td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">0.01</td> <td style="border-bottom: white 2.25pt double"> </td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(0.00</td> <td style="border-bottom: white 2.25pt double">)</td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(0.01</td> <td style="border-bottom: white 2.25pt double">)</td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(0.03</td> <td style="border-bottom: white 2.25pt double">)</td></tr> </table> Approximately <span id="xdx_90A_ecustom--DilutiveSecuritiesIncludedInComputationOfEarningsPerShareAmount_pid_uShares_c20260401__20260630__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zWXcMiV48A7l" title="Dilutive Securities Included in Computation of Earnings Per Share, Amount">2,273,140 stock options and <span id="xdx_901_ecustom--DilutiveSecuritiesIncludedInComputationOfEarningsPerShareAmount_pid_uShares_c20260401__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zeUt6PGgXJY4" title="Dilutive Securities Included in Computation of Earnings Per Share, Amount">1,152,404 restricted stock units for the three months ended June 30, 2026 were included in the diluted EPS calculation because they were dilutive. Additional stock options and restricted stock units were excluded from the diluted EPS calculation for the three-month period ended June 30, 2026 because they were anti-dilutive, primarily consisting of unvested and out-of-the-money options of <span id="xdx_90C_ecustom--AntidilutiveSecuritiesExcludedInComputationOfEarningsPerShareAmount_pid_uShares_c20260401__20260630__us-gaap--AwardTypeAxis__custom--StockOptionsMember_z5GgamOAIvr7" title="Anti-dilutive Securities Excluded in Computation of Earnings Per Share, Amount">1,677,997 and unvested performance-based awards of <span id="xdx_903_ecustom--AntidilutiveSecuritiesExcludedInComputationOfEarningsPerShareAmount_pid_uShares_c20260401__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zOK24wjp37z3" title="Anti-dilutive Securities Excluded in Computation of Earnings Per Share, Amount">525,875. Because the Company reported a net loss for the six months ended June 30, 2026, all potential common shares were anti-dilutive and therefore excluded from the calculation of diluted net loss per share for the period. USE OF ESTIMATES IN THE FINANCIAL STATEMENTS The preparation of financial statements in conformity with United States generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Important estimates include but are not limited to asset lives, deferred tax valuation allowances, inventory valuation, expected credit losses, and customer rebate and incentive accruals. The results of operations for the six months ended June 30, 2026 are not necessarily indicative of the results that may be expected for the entire 2026 fiscal year. REVENUE RECOGNITION Our revenues are derived from three business sources: (i) domestic core (which consists of US and Canada), (ii) international core, and (iii) pharma services and clinical trials. Our domestic and international core revenues consist of sales of our syringe drivers, tubing and needles (“Product Revenue”) for the delivery of subcutaneous drugs that are FDA cleared for use with the KORU Medical infusion system, with the primary delivery for immunoglobulin to treat Primary Immunodeficiency Diseases (“PIDD”) and Chronic Inflammatory Demyelinating Polyneuropathy (“CIDP”). Pharma services and clinical trials consist of Product Revenue for feasibility/clinical trials (pre-clinical studies, Phase I, Phase II, Phase III) of biopharmaceutical companies in the drug development process as well as non-recurring engineering services (“NRE”) revenues (including testing and registration services) received from biopharmaceutical companies to ready or customize the FREEDOMTM System for clinical and commercial use across multiple drug categories. For Product Revenue, we recognize revenues when shipment occurs, at which point the customer obtains control and ownership of the goods. Shipping costs generally are billed to customers and are included in Product Revenue. The Company generally does not accept return of goods shipped unless it is a Company error. The only credits provided to customers are for defective merchandise. The Company warrants the syringe driver from defects in materials and workmanship under normal use and the warranty does not include a performance obligation. The costs under the warranty are expensed as incurred. Rebates are provided to distributors for the difference in selling price to distributors and pricing specified to select customers. In addition, rebates are provided to customers for meeting growth targets. Provisions for both distributor pricing and customer growth rebates are variable consideration and are recorded as a reduction of revenue in the same period the related sales are recorded or when it is probable the growth target will be achieved. We recognize NRE revenue under an input method, which recognizes revenue on the basis of our efforts or inputs (for example, resources consumed, labor hours expended, costs incurred, or time elapsed) to the satisfaction of a performance obligation relative to the total expected inputs to the satisfaction of that performance obligation (i.e. completion milestone). The input method that we use is based on costs incurred. Contracts are often modified to account for changes in contract specifications and requirements. Contract modifications exist when the modification either creates new, or changes existing, enforceable rights and obligations. Generally, when contract modifications create new performance obligations, the modification is considered to be a separate contract and revenue is recognized prospectively. When contract modifications change existing performance obligations, the impact on the existing transaction price and measure of progress for the performance obligation to which it relates is generally recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. Contract assets primarily represent revenue earnings over time that are not yet billable based on the terms of the contracts. Contract liabilities (i.e., deferred revenue) consist of fees invoiced or paid by the Company’s customers for which the associated performance obligations have not been satisfied and revenue has not been recognized based on the Company’s revenue recognition criteria described above. The Company has recognized a contract asset, which is included in other receivables in the accompanying balance sheet, of $335,206 and $319,955 as of June 30, 2026 and December 31, 2025, respectively. The following table summarizes net revenues from our distributors and direct customers by geography for the three and six months ended June 30, 2026, and 2025. Schedule of Net Revenues by Customer Type and Geography Table <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 6.5in; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="5" style="border-bottom: Black 1pt solid; text-align: center">Three Months Ended June 30,</td> <td> </td> <td colspan="5" style="border-bottom: Black 1pt solid; text-align: center">Six Months Ended June 30,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2026</td> <td> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2025</td> <td> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2026</td> <td> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2025</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="width: 29%">Revenues</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 14%; text-align: right"> </td> <td style="width: 3%"> </td> <td style="width: 1%"> </td> <td style="width: 14%; text-align: right"> </td> <td style="width: 3%"> </td> <td style="width: 1%"> </td> <td style="width: 14%; text-align: right"> </td> <td style="width: 3%"> </td> <td style="width: 1%"> </td> <td style="width: 14%; text-align: right"> </td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td style="padding-left: 0.2in">Domestic</td> <td> </td> <td>$</td> <td id="xdx_986_eus-gaap--Revenues_c20260401__20260630__srt--StatementGeographicalAxis__country--US_zRaDpYyQusEh" style="text-align: right" title="Net Revenues">8,396,591</td> <td> </td> <td>$</td> <td id="xdx_988_eus-gaap--Revenues_c20250401__20250630__srt--StatementGeographicalAxis__country--US_zLXLHOBmOxO9" style="text-align: right" title="Net Revenues">8,012,272</td> <td> </td> <td>$</td> <td id="xdx_986_eus-gaap--Revenues_c20260101__20260630__srt--StatementGeographicalAxis__country--US_zFrSEtkNL995" style="text-align: right" title="Net Revenues">16,835,334</td> <td> </td> <td>$</td> <td id="xdx_98A_eus-gaap--Revenues_c20250101__20250630__srt--StatementGeographicalAxis__country--US_z5DGjFb78J29" style="text-align: right" title="Net Revenues">15,217,904</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.2in">International</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_988_eus-gaap--Revenues_c20260401__20260630__srt--StatementGeographicalAxis__us-gaap--NonUsMember_zFJ7U2OQDCE5" style="border-bottom: black 1pt solid; text-align: right" title="Net Revenues">3,648,829</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_986_eus-gaap--Revenues_c20250401__20250630__srt--StatementGeographicalAxis__us-gaap--NonUsMember_z833GrUYyRej" style="border-bottom: black 1pt solid; text-align: right" title="Net Revenues">2,182,528</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_983_eus-gaap--Revenues_c20260101__20260630__srt--StatementGeographicalAxis__us-gaap--NonUsMember_zw0r8rHqTtii" style="border-bottom: black 1pt solid; text-align: right" title="Net Revenues">6,974,710</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_985_eus-gaap--Revenues_c20250101__20250630__srt--StatementGeographicalAxis__us-gaap--NonUsMember_zBwOu04xzF5f" style="border-bottom: black 1pt solid; text-align: right" title="Net Revenues">4,611,971</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td>Total</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td id="xdx_981_eus-gaap--Revenues_c20260401__20260630_zlQ4m7C82Tfi" style="border-bottom: black 2.25pt double; text-align: right" title="Revenues">12,045,420</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td id="xdx_980_eus-gaap--Revenues_c20250401__20250630_zEYMs8aartlh" style="border-bottom: black 2.25pt double; text-align: right" title="Revenues">10,194,800</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td id="xdx_98B_eus-gaap--Revenues_c20260101__20260630_zzvWO4NInli2" style="border-bottom: black 2.25pt double; text-align: right" title="Revenues">23,810,044</td> <td style="border-bottom: white 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double">$</td> <td id="xdx_982_eus-gaap--Revenues_c20250101__20250630_zycNIE2x0l4j" style="border-bottom: black 2.25pt double; text-align: right" title="Revenues">19,829,875</td> <td> </td></tr> </table> ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED The Company considers the applicability and impact of all recently issued accounting pronouncements. Recent accounting pronouncements not specifically identified in our disclosures are either not applicable to the Company or are not expected to have a material effect on our financial condition or results of operations. IMPAIRMENT OF LONG-LIVED ASSETS The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition are less than the carrying amount. The impairment loss, if recognized, would be based on the excess of the carrying value of the impaired asset over its respective fair value. The Company did not record any impairment losses for the quarter ended June 30, 2026, nor June 30, 2025.

NATURE OF OPERATIONS KORU MEDICAL SYSTEMS, INC. (the “Company,” “KORU Medical,” “KORU,” “we,” “us” or “our”) develops, manufactures and commercializes innovative and patient-centric large volume subcutaneous infusion solutions primarily for the subcutaneous drug delivery market as governed by the United States Food and Drug Administration (the “FDA”) quality and regulatory system and international standards for quality system management. The Company operates as one segment.

BASIS OF PRESENTATION The accompanying financial statements should be read in conjunction with the Company’s annual report on Form 10-K for the year ended December 31, 2025 (“Annual Report”). In accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”), the Company has omitted footnote disclosures that would substantially duplicate the disclosures contained in the audited financial statements of the Company. The accompanying interim financial statements are unaudited and reflect all adjustments which are in the opinion of management necessary for a fair statement of the Company’s financial position, results of operations, and cash flows for the periods presented. All such adjustments are of a normal, recurring nature. The Company’s results of operations and cash flows for the interim periods are not necessarily indicative of the results of operations and cash flows that it may achieve in future periods.

CASH AND CASH EQUIVALENTS For purposes of the statements of cash flows, the Company considers all short-term investments with an original maturity of three months or less to be cash equivalents. As of June 30, 2026 the Company held cash and cash-equivalents of $8.3 million.

8300000

INTANGIBLE ASSETS Costs incurred in obtaining patents have been capitalized and are being amortized over the legal life of the patents. During the three months ended June 30, 2026, the Company acquired certain intangible assets for $961,035. This purchase was accounted for as a technology asset acquisition, as it did not meet the definition of a business combination under ASC 805.

961035

SOFTWARE DEVELOPMENT COSTS The Company capitalizes certain costs related to the development of internal-use software in accordance with ASC 350-40, Internal-Use Software. Capitalization begins when management has authorized the project, and it is probable that the software will be completed and used as intended. Capitalized costs primarily include internal labor directly associated with application development activities, such as coding, configuration, and testing.

STOCK-BASED COMPENSATION The Company maintains an omnibus equity incentive plan under which it grants options and other equity incentive awards to certain executives, employees and consultants, as well as shares of common stock to non-employee directors. The fair value of each stock option grant is estimated on the date of the grant using the Black-Scholes option-pricing model. All options are charged against income at their fair value. The entire compensation expense of the award is recognized over the vesting period. Shares of stock granted for director fees are recorded at the fair value of the shares at the grant date. Restricted stock awards are equity classified and measured at the fair market value of the underlying stock at the grant date. The fair value of restricted stock awards vesting at certain market capitalization thresholds were estimated on the date of grant using the Brownian Motion Monte Carlo lattice model. The fair value of restricted stock awards with time-based vesting were estimated on the date of grant at the current stock price. The fair value of restricted stock awards vesting at certain annual sales growth thresholds were estimated as of the date of Board acknowledgement of the achievement, at the current stock price. We recognize restricted stock expense using the straight-line attribution method over the requisite service period and account for forfeitures as they occur. Restricted stock units (“RSUs”) and performance stock units (“PSUs”) are equity classified and measured at the fair market value of the underlying stock at the grant date.

NET INCOME PER SHARE The following table sets forth the computation of basic and diluted income per share: Schedule of Basic and Diluted Income per Share Computation Table <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 7.5in; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="width: 40%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td id="xdx_498_20260401__20260630_zktuBAyY9iW3" style="width: 12%"> </td> <td style="width: 2%"> </td> <td style="width: 1%"> </td> <td id="xdx_491_20250401__20250630_zMUHXNDLKMV2" style="width: 12%"> </td> <td style="width: 2%"> </td> <td style="width: 1%"> </td> <td id="xdx_490_20260101__20260630_zPXMBbTZmBZ5" style="width: 12%"> </td> <td style="width: 2%"> </td> <td style="width: 1%"> </td> <td id="xdx_494_20250101__20250630_zKBTWkhzO2Q4" style="width: 12%"> </td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="5" style="border-bottom: Black 1pt solid; text-align: center">Three Months Ended June 30,</td> <td> </td> <td colspan="5" style="border-bottom: Black 1pt solid; text-align: center">Six Months Ended June 30,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2026</td> <td> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2025</td> <td> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2026</td> <td> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2025</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td>Numerator:</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr id="xdx_402_eus-gaap--NetIncomeLoss_zr2aCPzDzJH3" style="vertical-align: bottom; background-color: #E6E6E6"> <td style="padding-left: 0.2in">Net income(loss) for basic and diluted earnings per share </td> <td> </td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">252,449</td> <td> </td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(206,867</td> <td style="border-bottom: White 2.25pt double">)</td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(554,629</td> <td style="border-bottom: White 2.25pt double">)</td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(1,373,104</td> <td style="border-bottom: White 2.25pt double">)</td></tr> <tr id="xdx_40C_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_pid_uShares_zQQlIREqYpD8" style="vertical-align: bottom"> <td style="padding-left: 0.2in">Denominator for basic income per share weighted average shares</td> <td> </td> <td style="border-bottom: Black 2.25pt double"> </td> <td style="border-bottom: Black 2.25pt double; text-align: right">46,083,893</td> <td style="border-bottom: white 2.25pt double"> </td> <td style="border-bottom: Black 2.25pt double"> </td> <td style="border-bottom: Black 2.25pt double; text-align: right">46,193,709</td> <td style="border-bottom: white 2.25pt double"> </td> <td style="border-bottom: Black 2.25pt double"> </td> <td style="border-bottom: Black 2.25pt double; text-align: right">46,223,623</td> <td style="border-bottom: white 2.25pt double"> </td> <td style="border-bottom: Black 2.25pt double"> </td> <td style="border-bottom: Black 2.25pt double; text-align: right">46,088,353</td> <td style="border-bottom: white 2.25pt double"> </td></tr> <tr style="vertical-align: bottom; background-color: #E8E8E8"> <td>Effect of dilutive securities:</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr id="xdx_409_eus-gaap--IncrementalCommonSharesAttributableToShareBasedPaymentArrangements_pid_uShares_zEpgT1C1vxk6" style="vertical-align: bottom"> <td>Options, restricted stock units, and warrants</td> <td> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">3,425,544</td> <td> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">—</td> <td> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">—</td> <td> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">—</td> <td> </td></tr> <tr id="xdx_400_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_pid_uShares_zZKCqr91Ucl2" style="vertical-align: bottom; background-color: #E6E6E6"> <td>Denominator for diluted income per share weighted average shares</td> <td> </td> <td> </td> <td style="text-align: right">49,509,437</td> <td> </td> <td> </td> <td style="text-align: right">46,193,709</td> <td> </td> <td> </td> <td style="text-align: right">46,223,623</td> <td> </td> <td> </td> <td style="text-align: right">46,088,353</td> <td> </td></tr> <tr id="xdx_401_eus-gaap--EarningsPerShareBasic_pid_uUSDPShares_zwnZiR0NehFe" style="vertical-align: bottom"> <td>Basic income per share</td> <td> </td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">0.01</td> <td style="border-bottom: White 2.25pt double"> </td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(0.00</td> <td style="border-bottom: White 2.25pt double">)</td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(0.01</td> <td style="border-bottom: White 2.25pt double">)</td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(0.03</td> <td style="border-bottom: White 2.25pt double">)</td></tr> <tr id="xdx_40D_eus-gaap--EarningsPerShareDiluted_pid_uUSDPShares_zyNN3PpNMEsa" style="vertical-align: bottom; background-color: #E6E6E6"> <td>Diluted income per share</td> <td> </td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">0.01</td> <td style="border-bottom: white 2.25pt double"> </td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(0.00</td> <td style="border-bottom: white 2.25pt double">)</td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(0.01</td> <td style="border-bottom: white 2.25pt double">)</td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(0.03</td> <td style="border-bottom: white 2.25pt double">)</td></tr> </table> Approximately <span id="xdx_90A_ecustom--DilutiveSecuritiesIncludedInComputationOfEarningsPerShareAmount_pid_uShares_c20260401__20260630__us-gaap--AwardTypeAxis__custom--StockOptionsMember_zWXcMiV48A7l" title="Dilutive Securities Included in Computation of Earnings Per Share, Amount">2,273,140 stock options and <span id="xdx_901_ecustom--DilutiveSecuritiesIncludedInComputationOfEarningsPerShareAmount_pid_uShares_c20260401__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zeUt6PGgXJY4" title="Dilutive Securities Included in Computation of Earnings Per Share, Amount">1,152,404 restricted stock units for the three months ended June 30, 2026 were included in the diluted EPS calculation because they were dilutive. Additional stock options and restricted stock units were excluded from the diluted EPS calculation for the three-month period ended June 30, 2026 because they were anti-dilutive, primarily consisting of unvested and out-of-the-money options of <span id="xdx_90C_ecustom--AntidilutiveSecuritiesExcludedInComputationOfEarningsPerShareAmount_pid_uShares_c20260401__20260630__us-gaap--AwardTypeAxis__custom--StockOptionsMember_z5GgamOAIvr7" title="Anti-dilutive Securities Excluded in Computation of Earnings Per Share, Amount">1,677,997 and unvested performance-based awards of <span id="xdx_903_ecustom--AntidilutiveSecuritiesExcludedInComputationOfEarningsPerShareAmount_pid_uShares_c20260401__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zOK24wjp37z3" title="Anti-dilutive Securities Excluded in Computation of Earnings Per Share, Amount">525,875. Because the Company reported a net loss for the six months ended June 30, 2026, all potential common shares were anti-dilutive and therefore excluded from the calculation of diluted net loss per share for the period.

The following table sets forth the computation of basic and diluted income per share: Schedule of Basic and Diluted Income per Share Computation Table <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 7.5in; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="width: 40%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td id="xdx_498_20260401__20260630_zktuBAyY9iW3" style="width: 12%"> </td> <td style="width: 2%"> </td> <td style="width: 1%"> </td> <td id="xdx_491_20250401__20250630_zMUHXNDLKMV2" style="width: 12%"> </td> <td style="width: 2%"> </td> <td style="width: 1%"> </td> <td id="xdx_490_20260101__20260630_zPXMBbTZmBZ5" style="width: 12%"> </td> <td style="width: 2%"> </td> <td style="width: 1%"> </td> <td id="xdx_494_20250101__20250630_zKBTWkhzO2Q4" style="width: 12%"> </td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="5" style="border-bottom: Black 1pt solid; text-align: center">Three Months Ended June 30,</td> <td> </td> <td colspan="5" style="border-bottom: Black 1pt solid; text-align: center">Six Months Ended June 30,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2026</td> <td> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2025</td> <td> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2026</td> <td> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2025</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td>Numerator:</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr id="xdx_402_eus-gaap--NetIncomeLoss_zr2aCPzDzJH3" style="vertical-align: bottom; background-color: #E6E6E6"> <td style="padding-left: 0.2in">Net income(loss) for basic and diluted earnings per share </td> <td> </td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">252,449</td> <td> </td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(206,867</td> <td style="border-bottom: White 2.25pt double">)</td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(554,629</td> <td style="border-bottom: White 2.25pt double">)</td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(1,373,104</td> <td style="border-bottom: White 2.25pt double">)</td></tr> <tr id="xdx_40C_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_pid_uShares_zQQlIREqYpD8" style="vertical-align: bottom"> <td style="padding-left: 0.2in">Denominator for basic income per share weighted average shares</td> <td> </td> <td style="border-bottom: Black 2.25pt double"> </td> <td style="border-bottom: Black 2.25pt double; text-align: right">46,083,893</td> <td style="border-bottom: white 2.25pt double"> </td> <td style="border-bottom: Black 2.25pt double"> </td> <td style="border-bottom: Black 2.25pt double; text-align: right">46,193,709</td> <td style="border-bottom: white 2.25pt double"> </td> <td style="border-bottom: Black 2.25pt double"> </td> <td style="border-bottom: Black 2.25pt double; text-align: right">46,223,623</td> <td style="border-bottom: white 2.25pt double"> </td> <td style="border-bottom: Black 2.25pt double"> </td> <td style="border-bottom: Black 2.25pt double; text-align: right">46,088,353</td> <td style="border-bottom: white 2.25pt double"> </td></tr> <tr style="vertical-align: bottom; background-color: #E8E8E8"> <td>Effect of dilutive securities:</td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr id="xdx_409_eus-gaap--IncrementalCommonSharesAttributableToShareBasedPaymentArrangements_pid_uShares_zEpgT1C1vxk6" style="vertical-align: bottom"> <td>Options, restricted stock units, and warrants</td> <td> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">3,425,544</td> <td> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">—</td> <td> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">—</td> <td> </td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">—</td> <td> </td></tr> <tr id="xdx_400_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_pid_uShares_zZKCqr91Ucl2" style="vertical-align: bottom; background-color: #E6E6E6"> <td>Denominator for diluted income per share weighted average shares</td> <td> </td> <td> </td> <td style="text-align: right">49,509,437</td> <td> </td> <td> </td> <td style="text-align: right">46,193,709</td> <td> </td> <td> </td> <td style="text-align: right">46,223,623</td> <td> </td> <td> </td> <td style="text-align: right">46,088,353</td> <td> </td></tr> <tr id="xdx_401_eus-gaap--EarningsPerShareBasic_pid_uUSDPShares_zwnZiR0NehFe" style="vertical-align: bottom"> <td>Basic income per share</td> <td> </td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">0.01</td> <td style="border-bottom: White 2.25pt double"> </td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(0.00</td> <td style="border-bottom: White 2.25pt double">)</td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(0.01</td> <td style="border-bottom: White 2.25pt double">)</td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(0.03</td> <td style="border-bottom: White 2.25pt double">)</td></tr> <tr id="xdx_40D_eus-gaap--EarningsPerShareDiluted_pid_uUSDPShares_zyNN3PpNMEsa" style="vertical-align: bottom; background-color: #E6E6E6"> <td>Diluted income per share</td> <td> </td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">0.01</td> <td style="border-bottom: white 2.25pt double"> </td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(0.00</td> <td style="border-bottom: white 2.25pt double">)</td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(0.01</td> <td style="border-bottom: white 2.25pt double">)</td> <td style="border-bottom: Black 2.25pt double">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(0.03</td> <td style="border-bottom: white 2.25pt double">)</td></tr> </table>

252449

-206867

-554629

-1373104

46083893

46193709

46223623

46088353

3425544

49509437

46193709

46223623

46088353

0.01

-0.00

-0.01

-0.03

0.01

-0.00

-0.01

-0.03

2273140 1152404 1677997 525875

USE OF ESTIMATES IN THE FINANCIAL STATEMENTS The preparation of financial statements in conformity with United States generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Important estimates include but are not limited to asset lives, deferred tax valuation allowances, inventory valuation, expected credit losses, and customer rebate and incentive accruals. The results of operations for the six months ended June 30, 2026 are not necessarily indicative of the results that may be expected for the entire 2026 fiscal year.

REVENUE RECOGNITION Our revenues are derived from three business sources: (i) domestic core (which consists of US and Canada), (ii) international core, and (iii) pharma services and clinical trials. Our domestic and international core revenues consist of sales of our syringe drivers, tubing and needles (“Product Revenue”) for the delivery of subcutaneous drugs that are FDA cleared for use with the KORU Medical infusion system, with the primary delivery for immunoglobulin to treat Primary Immunodeficiency Diseases (“PIDD”) and Chronic Inflammatory Demyelinating Polyneuropathy (“CIDP”). Pharma services and clinical trials consist of Product Revenue for feasibility/clinical trials (pre-clinical studies, Phase I, Phase II, Phase III) of biopharmaceutical companies in the drug development process as well as non-recurring engineering services (“NRE”) revenues (including testing and registration services) received from biopharmaceutical companies to ready or customize the FREEDOMTM System for clinical and commercial use across multiple drug categories. For Product Revenue, we recognize revenues when shipment occurs, at which point the customer obtains control and ownership of the goods. Shipping costs generally are billed to customers and are included in Product Revenue. The Company generally does not accept return of goods shipped unless it is a Company error. The only credits provided to customers are for defective merchandise. The Company warrants the syringe driver from defects in materials and workmanship under normal use and the warranty does not include a performance obligation. The costs under the warranty are expensed as incurred. Rebates are provided to distributors for the difference in selling price to distributors and pricing specified to select customers. In addition, rebates are provided to customers for meeting growth targets. Provisions for both distributor pricing and customer growth rebates are variable consideration and are recorded as a reduction of revenue in the same period the related sales are recorded or when it is probable the growth target will be achieved. We recognize NRE revenue under an input method, which recognizes revenue on the basis of our efforts or inputs (for example, resources consumed, labor hours expended, costs incurred, or time elapsed) to the satisfaction of a performance obligation relative to the total expected inputs to the satisfaction of that performance obligation (i.e. completion milestone). The input method that we use is based on costs incurred. Contracts are often modified to account for changes in contract specifications and requirements. Contract modifications exist when the modification either creates new, or changes existing, enforceable rights and obligations. Generally, when contract modifications create new performance obligations, the modification is considered to be a separate contract and revenue is recognized prospectively. When contract modifications change existing performance obligations, the impact on the existing transaction price and measure of progress for the performance obligation to which it relates is generally recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. Contract assets primarily represent revenue earnings over time that are not yet billable based on the terms of the contracts. Contract liabilities (i.e., deferred revenue) consist of fees invoiced or paid by the Company’s customers for which the associated performance obligations have not been satisfied and revenue has not been recognized based on the Company’s revenue recognition criteria described above. The Company has recognized a contract asset, which is included in other receivables in the accompanying balance sheet, of $335,206 and $319,955 as of June 30, 2026 and December 31, 2025, respectively. The following table summarizes net revenues from our distributors and direct customers by geography for the three and six months ended June 30, 2026, and 2025. Schedule of Net Revenues by Customer Type and Geography Table <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 6.5in; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="5" style="border-bottom: Black 1pt solid; text-align: center">Three Months Ended June 30,</td> <td> </td> <td colspan="5" style="border-bottom: Black 1pt solid; text-align: center">Six Months Ended June 30,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2026</td> <td> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2025</td> <td> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2026</td> <td> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2025</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="width: 29%">Revenues</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 14%; text-align: right"> </td> <td style="width: 3%"> </td> <td style="width: 1%"> </td> <td style="width: 14%; text-align: right"> </td> <td style="width: 3%"> </td> <td style="width: 1%"> </td> <td style="width: 14%; text-align: right"> </td> <td style="width: 3%"> </td> <td style="width: 1%"> </td> <td style="width: 14%; text-align: right"> </td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td style="padding-left: 0.2in">Domestic</td> <td> </td> <td>$</td> <td id="xdx_986_eus-gaap--Revenues_c20260401__20260630__srt--StatementGeographicalAxis__country--US_zRaDpYyQusEh" style="text-align: right" title="Net Revenues">8,396,591</td> <td> </td> <td>$</td> <td id="xdx_988_eus-gaap--Revenues_c20250401__20250630__srt--StatementGeographicalAxis__country--US_zLXLHOBmOxO9" style="text-align: right" title="Net Revenues">8,012,272</td> <td> </td> <td>$</td> <td id="xdx_986_eus-gaap--Revenues_c20260101__20260630__srt--StatementGeographicalAxis__country--US_zFrSEtkNL995" style="text-align: right" title="Net Revenues">16,835,334</td> <td> </td> <td>$</td> <td id="xdx_98A_eus-gaap--Revenues_c20250101__20250630__srt--StatementGeographicalAxis__country--US_z5DGjFb78J29" style="text-align: right" title="Net Revenues">15,217,904</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.2in">International</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_988_eus-gaap--Revenues_c20260401__20260630__srt--StatementGeographicalAxis__us-gaap--NonUsMember_zFJ7U2OQDCE5" style="border-bottom: black 1pt solid; text-align: right" title="Net Revenues">3,648,829</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_986_eus-gaap--Revenues_c20250401__20250630__srt--StatementGeographicalAxis__us-gaap--NonUsMember_z833GrUYyRej" style="border-bottom: black 1pt solid; text-align: right" title="Net Revenues">2,182,528</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_983_eus-gaap--Revenues_c20260101__20260630__srt--StatementGeographicalAxis__us-gaap--NonUsMember_zw0r8rHqTtii" style="border-bottom: black 1pt solid; text-align: right" title="Net Revenues">6,974,710</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_985_eus-gaap--Revenues_c20250101__20250630__srt--StatementGeographicalAxis__us-gaap--NonUsMember_zBwOu04xzF5f" style="border-bottom: black 1pt solid; text-align: right" title="Net Revenues">4,611,971</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td>Total</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td id="xdx_981_eus-gaap--Revenues_c20260401__20260630_zlQ4m7C82Tfi" style="border-bottom: black 2.25pt double; text-align: right" title="Revenues">12,045,420</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td id="xdx_980_eus-gaap--Revenues_c20250401__20250630_zEYMs8aartlh" style="border-bottom: black 2.25pt double; text-align: right" title="Revenues">10,194,800</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td id="xdx_98B_eus-gaap--Revenues_c20260101__20260630_zzvWO4NInli2" style="border-bottom: black 2.25pt double; text-align: right" title="Revenues">23,810,044</td> <td style="border-bottom: white 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double">$</td> <td id="xdx_982_eus-gaap--Revenues_c20250101__20250630_zycNIE2x0l4j" style="border-bottom: black 2.25pt double; text-align: right" title="Revenues">19,829,875</td> <td> </td></tr> </table>

335206

319955

The following table summarizes net revenues from our distributors and direct customers by geography for the three and six months ended June 30, 2026, and 2025. Schedule of Net Revenues by Customer Type and Geography Table <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 6.5in; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="5" style="border-bottom: Black 1pt solid; text-align: center">Three Months Ended June 30,</td> <td> </td> <td colspan="5" style="border-bottom: Black 1pt solid; text-align: center">Six Months Ended June 30,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2026</td> <td> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2025</td> <td> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2026</td> <td> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2025</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="width: 29%">Revenues</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 14%; text-align: right"> </td> <td style="width: 3%"> </td> <td style="width: 1%"> </td> <td style="width: 14%; text-align: right"> </td> <td style="width: 3%"> </td> <td style="width: 1%"> </td> <td style="width: 14%; text-align: right"> </td> <td style="width: 3%"> </td> <td style="width: 1%"> </td> <td style="width: 14%; text-align: right"> </td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td style="padding-left: 0.2in">Domestic</td> <td> </td> <td>$</td> <td id="xdx_986_eus-gaap--Revenues_c20260401__20260630__srt--StatementGeographicalAxis__country--US_zRaDpYyQusEh" style="text-align: right" title="Net Revenues">8,396,591</td> <td> </td> <td>$</td> <td id="xdx_988_eus-gaap--Revenues_c20250401__20250630__srt--StatementGeographicalAxis__country--US_zLXLHOBmOxO9" style="text-align: right" title="Net Revenues">8,012,272</td> <td> </td> <td>$</td> <td id="xdx_986_eus-gaap--Revenues_c20260101__20260630__srt--StatementGeographicalAxis__country--US_zFrSEtkNL995" style="text-align: right" title="Net Revenues">16,835,334</td> <td> </td> <td>$</td> <td id="xdx_98A_eus-gaap--Revenues_c20250101__20250630__srt--StatementGeographicalAxis__country--US_z5DGjFb78J29" style="text-align: right" title="Net Revenues">15,217,904</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 0.2in">International</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_988_eus-gaap--Revenues_c20260401__20260630__srt--StatementGeographicalAxis__us-gaap--NonUsMember_zFJ7U2OQDCE5" style="border-bottom: black 1pt solid; text-align: right" title="Net Revenues">3,648,829</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_986_eus-gaap--Revenues_c20250401__20250630__srt--StatementGeographicalAxis__us-gaap--NonUsMember_z833GrUYyRej" style="border-bottom: black 1pt solid; text-align: right" title="Net Revenues">2,182,528</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_983_eus-gaap--Revenues_c20260101__20260630__srt--StatementGeographicalAxis__us-gaap--NonUsMember_zw0r8rHqTtii" style="border-bottom: black 1pt solid; text-align: right" title="Net Revenues">6,974,710</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_985_eus-gaap--Revenues_c20250101__20250630__srt--StatementGeographicalAxis__us-gaap--NonUsMember_zBwOu04xzF5f" style="border-bottom: black 1pt solid; text-align: right" title="Net Revenues">4,611,971</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td>Total</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td id="xdx_981_eus-gaap--Revenues_c20260401__20260630_zlQ4m7C82Tfi" style="border-bottom: black 2.25pt double; text-align: right" title="Revenues">12,045,420</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td id="xdx_980_eus-gaap--Revenues_c20250401__20250630_zEYMs8aartlh" style="border-bottom: black 2.25pt double; text-align: right" title="Revenues">10,194,800</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td id="xdx_98B_eus-gaap--Revenues_c20260101__20260630_zzvWO4NInli2" style="border-bottom: black 2.25pt double; text-align: right" title="Revenues">23,810,044</td> <td style="border-bottom: white 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double">$</td> <td id="xdx_982_eus-gaap--Revenues_c20250101__20250630_zycNIE2x0l4j" style="border-bottom: black 2.25pt double; text-align: right" title="Revenues">19,829,875</td> <td> </td></tr> </table>

8396591

8012272

16835334

15217904

3648829

2182528

6974710

4611971

12045420

10194800

23810044

19829875

ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED The Company considers the applicability and impact of all recently issued accounting pronouncements. Recent accounting pronouncements not specifically identified in our disclosures are either not applicable to the Company or are not expected to have a material effect on our financial condition or results of operations.

IMPAIRMENT OF LONG-LIVED ASSETS The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition are less than the carrying amount. The impairment loss, if recognized, would be based on the excess of the carrying value of the impaired asset over its respective fair value. The Company did not record any impairment losses for the quarter ended June 30, 2026, nor June 30, 2025.

NOTE 2 — PROPERTY AND EQUIPMENT Property and equipment consist of the following at: Schedule of Property and Equipment Table <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 6in; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">June 30, 2026</td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">December 31, 2025</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 55%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 19%; text-align: right"> </td> <td style="width: 3%"> </td> <td style="width: 1%"> </td> <td style="width: 19%; text-align: right"> </td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td>Furniture and office equipment</td> <td> </td> <td>$</td> <td id="xdx_983_eus-gaap--PropertyPlantAndEquipmentGross_iI_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FurnitureAndOfficeEquipmentMember_zQ8sZ98MwXLc" style="text-align: right">1,527,809</td> <td> </td> <td>$</td> <td id="xdx_98C_eus-gaap--PropertyPlantAndEquipmentGross_iI_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FurnitureAndOfficeEquipmentMember_zVbU53MyOeD" style="text-align: right">1,407,636</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Leasehold improvements</td> <td> </td> <td> </td> <td id="xdx_982_eus-gaap--PropertyPlantAndEquipmentGross_iI_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zwYwbOns3fTb" style="text-align: right">2,161,557</td> <td> </td> <td> </td> <td id="xdx_98D_eus-gaap--PropertyPlantAndEquipmentGross_iI_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zFLDFnLdPjJj" style="text-align: right">1,959,045</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td>Manufacturing equipment and tooling</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_98D_eus-gaap--PropertyPlantAndEquipmentGross_iI_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentAndToolingMember_znLkj9zpSCoa" style="border-bottom: black 1pt solid; text-align: right">4,663,208</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_981_eus-gaap--PropertyPlantAndEquipmentGross_iI_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentAndToolingMember_z75rJ9KEcQrf" style="border-bottom: black 1pt solid; text-align: right">5,171,898</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 0.2in">Total property and equipment</td> <td> </td> <td> </td> <td id="xdx_98D_eus-gaap--PropertyPlantAndEquipmentGross_iI_c20260630_zVy28eclgLV" style="text-align: right" title="Total property and equipment">8,352,574</td> <td> </td> <td> </td> <td id="xdx_982_eus-gaap--PropertyPlantAndEquipmentGross_iI_c20251231_zZJgoHILz0Ic" style="text-align: right" title="Total property and equipment">8,538,579</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td>Less: accumulated depreciation and amortization</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_98D_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_c20260630_zxyEaInFbvU8" style="border-bottom: black 1pt solid; text-align: right" title="Less: accumulated depreciation and amortization">(4,422,856</td> <td>)</td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_986_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_c20251231_zVQ1x1ANYrp4" style="border-bottom: black 1pt solid; text-align: right" title="Less: accumulated depreciation and amortization">(4,067,193</td> <td>)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Property and equipment, net</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td id="xdx_987_eus-gaap--PropertyPlantAndEquipmentNet_iI_c20260630_zTgXGpDtJm0f" style="border-bottom: black 2.25pt double; text-align: right" title="Property and equipment, net">3,929,718</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td id="xdx_986_eus-gaap--PropertyPlantAndEquipmentNet_iI_c20251231_zQTXbHZE4Xxi" style="border-bottom: black 2.25pt double; text-align: right" title="Property and equipment, net">4,471,386</td> <td> </td></tr> </table>

Property and equipment consist of the following at: Schedule of Property and Equipment Table <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 6in; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">June 30, 2026</td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">December 31, 2025</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 55%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 19%; text-align: right"> </td> <td style="width: 3%"> </td> <td style="width: 1%"> </td> <td style="width: 19%; text-align: right"> </td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td>Furniture and office equipment</td> <td> </td> <td>$</td> <td id="xdx_983_eus-gaap--PropertyPlantAndEquipmentGross_iI_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FurnitureAndOfficeEquipmentMember_zQ8sZ98MwXLc" style="text-align: right">1,527,809</td> <td> </td> <td>$</td> <td id="xdx_98C_eus-gaap--PropertyPlantAndEquipmentGross_iI_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FurnitureAndOfficeEquipmentMember_zVbU53MyOeD" style="text-align: right">1,407,636</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Leasehold improvements</td> <td> </td> <td> </td> <td id="xdx_982_eus-gaap--PropertyPlantAndEquipmentGross_iI_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zwYwbOns3fTb" style="text-align: right">2,161,557</td> <td> </td> <td> </td> <td id="xdx_98D_eus-gaap--PropertyPlantAndEquipmentGross_iI_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zFLDFnLdPjJj" style="text-align: right">1,959,045</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td>Manufacturing equipment and tooling</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_98D_eus-gaap--PropertyPlantAndEquipmentGross_iI_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentAndToolingMember_znLkj9zpSCoa" style="border-bottom: black 1pt solid; text-align: right">4,663,208</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_981_eus-gaap--PropertyPlantAndEquipmentGross_iI_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ManufacturingEquipmentAndToolingMember_z75rJ9KEcQrf" style="border-bottom: black 1pt solid; text-align: right">5,171,898</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 0.2in">Total property and equipment</td> <td> </td> <td> </td> <td id="xdx_98D_eus-gaap--PropertyPlantAndEquipmentGross_iI_c20260630_zVy28eclgLV" style="text-align: right" title="Total property and equipment">8,352,574</td> <td> </td> <td> </td> <td id="xdx_982_eus-gaap--PropertyPlantAndEquipmentGross_iI_c20251231_zZJgoHILz0Ic" style="text-align: right" title="Total property and equipment">8,538,579</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td>Less: accumulated depreciation and amortization</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_98D_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_c20260630_zxyEaInFbvU8" style="border-bottom: black 1pt solid; text-align: right" title="Less: accumulated depreciation and amortization">(4,422,856</td> <td>)</td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_986_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_c20251231_zVQ1x1ANYrp4" style="border-bottom: black 1pt solid; text-align: right" title="Less: accumulated depreciation and amortization">(4,067,193</td> <td>)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Property and equipment, net</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td id="xdx_987_eus-gaap--PropertyPlantAndEquipmentNet_iI_c20260630_zTgXGpDtJm0f" style="border-bottom: black 2.25pt double; text-align: right" title="Property and equipment, net">3,929,718</td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td id="xdx_986_eus-gaap--PropertyPlantAndEquipmentNet_iI_c20251231_zQTXbHZE4Xxi" style="border-bottom: black 2.25pt double; text-align: right" title="Property and equipment, net">4,471,386</td> <td> </td></tr> </table>

1527809

1407636

2161557

1959045

4663208

5171898

8352574

8538579

4422856

4067193

3929718

4471386

NOTE 3 — STOCK-BASED COMPENSATION The Company maintains three equity incentive plans: the 2015 Stock Option Plan, as amended (the “2015 Plan”), the 2021 Omnibus Equity Incentive Plan (the “2021 Plan”), and the 2024 Omnibus Equity Incentive Plan (the “2024 Plan”). All equity awards issued to employees, consultants, and non-employee directors on or after May 9, 2024, are issued from the 2024 Plan. The Company has also issued restricted stock and stock options as employment inducement awards outside of these plans to certain executive officers. The 2015 Plan provides for the grant of incentive stock options and nonqualified stock options. As of June 30, 2026, there were <span id="xdx_905_ecustom--SharesReservedForOutstandingAwards_pid_uShares_c20260101__20260630__us-gaap--PlanNameAxis__custom--StockOptionPlan2015Member_zGMze48PpsL2" title="Shares reserved for outstanding awards">1,903,000 shares reserved for outstanding awards under the 2015 Plan. The 2021 Plan provides for the grant of incentive stock options, nonqualified stock options, stock awards, restricted stock awards, restricted stock units, performance share units, stock appreciation rights, and/or other equity-based awards to employees, consultants and directors. As of June 30, 2026, there were <span id="xdx_90E_ecustom--SharesReservedForOutstandingAwards_pid_uShares_c20260101__20260630__us-gaap--PlanNameAxis__custom--StockOptionPlan2021Member_zj1FANyiEXf" title="Shares reserved for outstanding awards">100,000 shares reserved for outstanding awards under the 2021 Plan. The 2024 Plan provides for the grant of incentive stock options, nonqualified stock options, stock awards, restricted stock awards, restricted stock units, performance share units, stock appreciation rights and/or other equity-based awards to employees, consultants and directors. Awards previously made under the 2015 Plan and the 2021 Plan that are forfeited or cancelled after May 9, 2024 will be available for issuance under the 2024 Plan. As of June 30, 2026, there were <span id="xdx_90B_ecustom--SharesReservedForOutstandingAwards_pid_uShares_c20260101__20260630__us-gaap--PlanNameAxis__custom--OmnibusEquityIncentivePlan2024Member_z0QJzGgbKrK3" title="Shares reserved for outstanding awards">2,134,545 shares reserved for outstanding awards and <span id="xdx_90F_ecustom--SharesAvailableForIssuanceShareBasedCompensation_iI_pid_uShares_c20260630__us-gaap--PlanNameAxis__custom--OmnibusEquityIncentivePlan2024Member_zNHPybkU7VJi" title="Shares available for issuance">3,028,956 shares available for issuance under the 2024 Plan. Each non-employee director of the Company (other than the Chairman of the Board) is eligible to receive $<span id="xdx_909_ecustom--NonemployeeServicesTransactionCost_pid_uShares_c20260101__20260630__srt--TitleOfIndividualAxis__custom--NonEmployeeDirectorAndBoardAdvisorMember_zKT2bVmHHcF5" title="Non - employee services transaction cost">110,000 annually, <span id="xdx_906_eus-gaap--DeferredCompensationArrangementsOverallDescription_c20260101__20260630__srt--TitleOfIndividualAxis__custom--NonEmployeeDirectorAndBoardAdvisorMember_zkhPF1UdTd5h" title="Share-based goods and non-employee services transaction">to be paid quarterly in arrears of $12,500 in cash and $15,000 in common stock. The Chairman of the Board is eligible to receive $<span id="xdx_905_ecustom--NonemployeeServicesTransactionCost_pid_uShares_c20260101__20260630__srt--TitleOfIndividualAxis__srt--BoardOfDirectorsChairmanMember_zvJdaqt63Fo4" title="Non - employee services transaction cost">140,000 annually, <span id="xdx_90C_eus-gaap--DeferredCompensationArrangementsOverallDescription_c20260101__20260630__srt--TitleOfIndividualAxis__srt--BoardOfDirectorsChairmanMember_zfJIzg3plQSb" title="Share-based goods and non-employee services transaction">to be paid quarterly in arrears of $12,500 in cash and $22,500 in common stock. All payments were and are pro-rated for partial service. Restricted stock units (“RSUs”) and performance share units (“PSUs”) are equity classified and measured at the fair value of the underlying stock at the grant date. Shares of stock granted for non-employee director fees are recorded at the fair value of the shares at the grant date. On March 12, 2026 the Company announced the retirement of our CEO, Linda Tharby, with both parties entering into a separation and transition agreement, and general release. Ms. Tharby continued to serve as CEO through June 30, 2026, at which time she transitioned to a non-executive advisory employee, and will continue to serve as a member of the Board of Directors through December 31, 2026. As part of the separation and transition agreement, 580,000 unvested restricted stock awards from Ms. Tharby’s new hire inducement plan were forfeited during the six months ended June 30, 2026. All forfeited restricted stock awards were transferred to Treasury, and forfeited RSUs, PSUs, and stock options were remitted back to the 2024 Plan. Time-Vesting Stock Options The following table summarizes the status of the time-vested stock options outstanding at June 30, 2026: Schedule of status of time based stock options <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 4in; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid; text-align: center">Shares</td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Weighted Average Exercise Price</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td style="width: 60%">Outstanding at January 1</td> <td style="width: 1%"> </td> <td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_uShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember_zeNDS8bygrsf" style="width: 16%; text-align: right" title="Outstanding at beginning (in shares)">3,614,245</td> <td style="width: 5%"> </td> <td style="width: 1%">$</td> <td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_uUSDPShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember_zG7mWWliWnhb" style="width: 16%; text-align: right" title="Outstanding at beginning, price">3.48</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Granted</td> <td> </td> <td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_uShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember_zV8mg6NF8Jmi" style="text-align: right" title="Granted (in shares)">156,857</td> <td> </td> <td>$</td> <td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_uUSDPShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember_z95tomxp1ril" style="text-align: right" title="Granted">3.95</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td>Exercised</td> <td> </td> <td id="xdx_98A_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_pid_di_uShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember_zbklegQdHOj" style="text-align: right" title="Exercised (in shares)">—</td> <td> </td> <td> </td> <td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uUSDPShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember_zz8osBKVrD4h" style="text-align: right" title="Exercised">—</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Forfeited</td> <td> </td> <td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_pid_di_uShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember_ztfre1TNYFYa" style="text-align: right" title="Forfeited (in shares)">(81,272</td> <td>)</td> <td>$</td> <td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_pid_uUSDPShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember_zEQds2pFaxZj" style="text-align: right" title="Forfeited">2.73</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td>Outstanding at June 30</td> <td> </td> <td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_uShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember_z4aW65ENE4C8" style="text-align: right" title="Outstanding at end (in shares)">3,689,830</td> <td> </td> <td>$</td> <td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pid_uUSDPShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember_z759Hd0dclu2" style="text-align: right" title="Outstanding at ending, price">3.50</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Options exercisable at June 30</td> <td> </td> <td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_pid_uShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember_zYsRhngG6i7c" style="text-align: right" title="Options exercisable at end (in shares)">2,097,335</td> <td> </td> <td>$</td> <td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iI_pid_uUSDPShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember_zTXVXlbw8EJg" style="text-align: right" title="Options exercisable">3.28</td> <td> </td></tr> </table> Total stock-based compensation expense for time-vested stock options included in operating expense in the accompanying statement of operations was $308,252 and $562,305 for the three and six months ended June 30, 2026, respectively. As of June 30, 2026, the intrinsic value of all time-based stock options was $<span id="xdx_903_ecustom--StockbasedCompensationIntrinsicValue_iI_uUSD_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember_z7nJH3VGFXal" title="Stock-based compensation intrinsic value">3,014,639. The following table presents information pertaining to time-vested stock options outstanding at June 30, 2026: Schedule of information pertaining to options outstanding <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 7.5in; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: white"> <td style="border-bottom: black 1pt solid">Range of Exercise Price</td> <td> </td> <td style="border-bottom: black 1pt solid; text-align: center">Number Outstanding</td> <td> </td> <td style="border-bottom: black 1pt solid; text-align: center">Weighted Average Remaining Contractual Life</td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Weighted Average Exercise Price</td> <td> </td> <td style="border-bottom: black 1pt solid; text-align: center">Number Exercisable</td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Weighted Average Exercise Price</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 29%"> </td> <td style="width: 2%"> </td> <td style="width: 12%"> </td> <td style="width: 2%"> </td> <td style="width: 12%"> </td> <td style="width: 2%"> </td> <td style="width: 1%"> </td> <td style="width: 11%"> </td> <td style="width: 2%"> </td> <td style="width: 12%"> </td> <td style="width: 2%"> </td> <td style="width: 1%"> </td> <td style="width: 11%"> </td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td>$2.08 - $4.06</td> <td> </td> <td id="xdx_983_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions_iI_pid_uShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_z2bePbUSTCa4" style="text-align: right" title="Number outstanding">3,216,318</td> <td> </td> <td style="text-align: center"><span id="xdx_905_ecustom--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm1_dtY_c20260101__20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_z4TGjO22mpEb" title="Weighted average remaining contractual life">6.5 years</td> <td> </td> <td>$</td> <td id="xdx_98E_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iI_pid_uUSDPShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_zDP3jBpCXxui" style="text-align: right" title="Weighted average exercise price">3.28</td> <td> </td> <td id="xdx_985_ecustom--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions1_iI_pid_uShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_z8fVagZDOBeg" style="text-align: right" title="Number exercisable">2,097,335</td> <td> </td> <td>$</td> <td id="xdx_98C_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1_iI_pid_uUSDPShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_z2YnmFA2BMK2" style="text-align: right" title="Weighted average exercise price">3.28</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>$4.35 - $5.70</td> <td> </td> <td id="xdx_989_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions_iI_pid_uShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_zEAuVKQZAl41" style="text-align: right" title="Number outstanding">473,512</td> <td> </td> <td style="text-align: center"><span id="xdx_90E_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2_dtY_c20260101__20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_zUAtb2725mz1" title="Weighted average remaining contractual life">9.6 years</td> <td> </td> <td>$</td> <td id="xdx_987_ecustom--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance2_iI_pid_uUSDPShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_zCxuf7Nbwxf1" style="text-align: right" title="Weighted average exercise price">5.01</td> <td> </td> <td id="xdx_983_ecustom--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions2_iI_pid_uShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_zannvElFMjDh" style="text-align: right" title="Number exercisable">—</td> <td> </td> <td>$</td> <td id="xdx_983_ecustom--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice2_iI_pid_uUSDPShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_zWL03gkuuSX4" style="text-align: right" title="Weighted average exercise price">—</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td>Total</td> <td> </td> <td id="xdx_98C_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions_iI_pid_uShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceMember_zSesPET5Lgya" style="text-align: right" title="Number outstanding">3,689,830</td> <td> </td> <td style="text-align: center"><span id="xdx_90F_ecustom--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm_dtY_c20260101__20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceMember_zDaA70tCYgba" title="Weighted average remaining contractual life">6.9 years</td> <td> </td> <td>$</td> <td id="xdx_980_ecustom--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance_iI_pid_uUSDPShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceMember_z49eEDUrhPNj" style="text-align: right" title="Weighted average exercise price">3.50</td> <td> </td> <td id="xdx_98F_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions_iI_pid_uShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceMember_zADcpoWIeGEd" style="text-align: right" title="Number exercisable">2,097,335</td> <td> </td> <td>$</td> <td id="xdx_987_ecustom--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice_iI_pid_uUSDPShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceMember_zLVryUoZDDWd" style="text-align: right" title="Weighted average exercise price">3.28</td> <td> </td></tr> </table> As of June 30, 2026, there was $<span id="xdx_908_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized_iI_uUSD_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember_zfq82t03fNdc" title="Total unrecognized compensation cost">3,368,702 of total unrecognized compensation cost related to unvested share-based stock compensation awards granted under the Plans. That cost is expected to be recognized over a weighted-average period of 25 months. Restricted Stock Awards, RSUs, and PSUs The following table summarizes the activities for our unvested restricted stock awards, RSUs, and PSUs for the six months ended June 30, 2026. Schedule of Unvested Restricted Stock Awards, Restricted Stock Units, and Performance Stock Units Activity Table <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 4in; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid; text-align: center">Shares</td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Weighted Average Grant-Date Fair Value</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td style="width: 60%">Unvested at January 1</td> <td style="width: 1%"> </td> <td id="xdx_981_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumberUnvested_iS_pid_uShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zBdcevjGUCuf" style="width: 16%; text-align: right" title="Unvested at beginning, shares">1,722,147</td> <td style="width: 5%"> </td> <td style="width: 1%">$</td> <td id="xdx_988_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePriceUnvested_iS_pid_uUSDPShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zgYmpNSgAPK6" style="width: 16%; text-align: right" title="Unvested at beginning, price">2.99</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Granted</td> <td> </td> <td id="xdx_98C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrossUnvested_pid_uShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zqiYZE4p0ls5" style="text-align: right" title="Granted, shares">687,204</td> <td> </td> <td>$</td> <td id="xdx_988_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePriceUnvested_pid_uUSDPShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zWbrhDA3uRO2" style="text-align: right" title="Granted, price">4.81</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td>Vested</td> <td> </td> <td id="xdx_988_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedInPeriodGross_pid_uShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zflAJCka50P9" style="text-align: right" title="Vested, shares">(242,348</td> <td>)</td> <td>$</td> <td id="xdx_98E_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsVestedInPeriodWeightedAverageExercisePrice_pid_uUSDPShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_z4LOlVtWjewk" style="text-align: right" title="Vested, price">2.32</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Forfeited/canceled</td> <td> </td> <td id="xdx_98C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriodUnvested_pid_uShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zVwXfIDDNDG2" style="text-align: right" title="Forfeited/canceled, shares">(560,565</td> <td>)</td> <td>$</td> <td id="xdx_984_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePriceUnvested_pid_uUSDPShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zrRLrksf23ea" style="text-align: right" title="Forfeited/canceled, price">3.31</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td>Unvested at June 30</td> <td> </td> <td id="xdx_981_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumberUnvested_iE_pid_uShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zxr98Phczzjd" style="text-align: right" title="Unvested at end, shares">1,606,438</td> <td> </td> <td>$</td> <td id="xdx_981_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePriceUnvested_iE_pid_uUSDPShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zz8QWxXbmgPh" style="text-align: right" title="Unvested at end, price">3.61</td> <td> </td></tr> </table> During the six months ended June 30, 2026, <span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_pid_uShares_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zmv7rNMQ5zGl">580,000 shares of restricted stock originally issued to our former CEO as part of her new hire inducement award were forfeited and returned to treasury. Total stock-based compensation expense for restricted stock awards, RSUs, and PSUs, included in operating expense in the accompanying statement of operations was $<span id="xdx_903_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20260401__20260630__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_z9F4UhONzPek" title="Total stock-based compensation expense">52,021 and $<span id="xdx_903_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_c20260101__20260630__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zG5M0dfaqnCd" title="Total stock-based compensation expense">381,978 for the three and six months ended June 30, 2026, respectively. As of June 30, 2026, there was $4,919,605 of unrecognized compensation cost related to unvested employee restricted stock awards, RSUs, and PSUs. This amount is expected to be recognized over a weighted-average period of 25 months.

1903000 100000 2134545 3028956 110000

to be paid quarterly in arrears of $12,500 in cash and $15,000 in common stock.

140000

to be paid quarterly in arrears of $12,500 in cash and $22,500 in common stock.

The following table summarizes the status of the time-vested stock options outstanding at June 30, 2026: Schedule of status of time based stock options <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 4in; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid; text-align: center">Shares</td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Weighted Average Exercise Price</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td style="width: 60%">Outstanding at January 1</td> <td style="width: 1%"> </td> <td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_uShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember_zeNDS8bygrsf" style="width: 16%; text-align: right" title="Outstanding at beginning (in shares)">3,614,245</td> <td style="width: 5%"> </td> <td style="width: 1%">$</td> <td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_uUSDPShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember_zG7mWWliWnhb" style="width: 16%; text-align: right" title="Outstanding at beginning, price">3.48</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Granted</td> <td> </td> <td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_uShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember_zV8mg6NF8Jmi" style="text-align: right" title="Granted (in shares)">156,857</td> <td> </td> <td>$</td> <td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_uUSDPShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember_z95tomxp1ril" style="text-align: right" title="Granted">3.95</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td>Exercised</td> <td> </td> <td id="xdx_98A_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_pid_di_uShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember_zbklegQdHOj" style="text-align: right" title="Exercised (in shares)">—</td> <td> </td> <td> </td> <td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uUSDPShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember_zz8osBKVrD4h" style="text-align: right" title="Exercised">—</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Forfeited</td> <td> </td> <td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_pid_di_uShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember_ztfre1TNYFYa" style="text-align: right" title="Forfeited (in shares)">(81,272</td> <td>)</td> <td>$</td> <td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_pid_uUSDPShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember_zEQds2pFaxZj" style="text-align: right" title="Forfeited">2.73</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td>Outstanding at June 30</td> <td> </td> <td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_uShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember_z4aW65ENE4C8" style="text-align: right" title="Outstanding at end (in shares)">3,689,830</td> <td> </td> <td>$</td> <td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pid_uUSDPShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember_z759Hd0dclu2" style="text-align: right" title="Outstanding at ending, price">3.50</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Options exercisable at June 30</td> <td> </td> <td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_pid_uShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember_zYsRhngG6i7c" style="text-align: right" title="Options exercisable at end (in shares)">2,097,335</td> <td> </td> <td>$</td> <td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iI_pid_uUSDPShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember_zTXVXlbw8EJg" style="text-align: right" title="Options exercisable">3.28</td> <td> </td></tr> </table>

3614245

3.48

156857

3.95

81272

2.73

3689830

3.50

2097335

3.28

308252 562305 3014639 The following table presents information pertaining to time-vested stock options outstanding at June 30, 2026: Schedule of information pertaining to options outstanding <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 7.5in; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: white"> <td style="border-bottom: black 1pt solid">Range of Exercise Price</td> <td> </td> <td style="border-bottom: black 1pt solid; text-align: center">Number Outstanding</td> <td> </td> <td style="border-bottom: black 1pt solid; text-align: center">Weighted Average Remaining Contractual Life</td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Weighted Average Exercise Price</td> <td> </td> <td style="border-bottom: black 1pt solid; text-align: center">Number Exercisable</td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Weighted Average Exercise Price</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 29%"> </td> <td style="width: 2%"> </td> <td style="width: 12%"> </td> <td style="width: 2%"> </td> <td style="width: 12%"> </td> <td style="width: 2%"> </td> <td style="width: 1%"> </td> <td style="width: 11%"> </td> <td style="width: 2%"> </td> <td style="width: 12%"> </td> <td style="width: 2%"> </td> <td style="width: 1%"> </td> <td style="width: 11%"> </td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td>$2.08 - $4.06</td> <td> </td> <td id="xdx_983_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions_iI_pid_uShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_z2bePbUSTCa4" style="text-align: right" title="Number outstanding">3,216,318</td> <td> </td> <td style="text-align: center"><span id="xdx_905_ecustom--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm1_dtY_c20260101__20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_z4TGjO22mpEb" title="Weighted average remaining contractual life">6.5 years</td> <td> </td> <td>$</td> <td id="xdx_98E_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iI_pid_uUSDPShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_zDP3jBpCXxui" style="text-align: right" title="Weighted average exercise price">3.28</td> <td> </td> <td id="xdx_985_ecustom--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions1_iI_pid_uShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_z8fVagZDOBeg" style="text-align: right" title="Number exercisable">2,097,335</td> <td> </td> <td>$</td> <td id="xdx_98C_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1_iI_pid_uUSDPShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice1Member_z2YnmFA2BMK2" style="text-align: right" title="Weighted average exercise price">3.28</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>$4.35 - $5.70</td> <td> </td> <td id="xdx_989_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions_iI_pid_uShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_zEAuVKQZAl41" style="text-align: right" title="Number outstanding">473,512</td> <td> </td> <td style="text-align: center"><span id="xdx_90E_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2_dtY_c20260101__20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_zUAtb2725mz1" title="Weighted average remaining contractual life">9.6 years</td> <td> </td> <td>$</td> <td id="xdx_987_ecustom--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance2_iI_pid_uUSDPShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_zCxuf7Nbwxf1" style="text-align: right" title="Weighted average exercise price">5.01</td> <td> </td> <td id="xdx_983_ecustom--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions2_iI_pid_uShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_zannvElFMjDh" style="text-align: right" title="Number exercisable">—</td> <td> </td> <td>$</td> <td id="xdx_983_ecustom--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice2_iI_pid_uUSDPShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePrice2Member_zWL03gkuuSX4" style="text-align: right" title="Weighted average exercise price">—</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td>Total</td> <td> </td> <td id="xdx_98C_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions_iI_pid_uShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceMember_zSesPET5Lgya" style="text-align: right" title="Number outstanding">3,689,830</td> <td> </td> <td style="text-align: center"><span id="xdx_90F_ecustom--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm_dtY_c20260101__20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceMember_zDaA70tCYgba" title="Weighted average remaining contractual life">6.9 years</td> <td> </td> <td>$</td> <td id="xdx_980_ecustom--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance_iI_pid_uUSDPShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceMember_z49eEDUrhPNj" style="text-align: right" title="Weighted average exercise price">3.50</td> <td> </td> <td id="xdx_98F_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions_iI_pid_uShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceMember_zADcpoWIeGEd" style="text-align: right" title="Number exercisable">2,097,335</td> <td> </td> <td>$</td> <td id="xdx_987_ecustom--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice_iI_pid_uUSDPShares_c20260630__us-gaap--AwardTypeAxis__custom--TimeVestingStockOptionsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceMember_zLVryUoZDDWd" style="text-align: right" title="Weighted average exercise price">3.28</td> <td> </td></tr> </table>

3216318

P6Y6M

3.28

2097335

3.28

473512

P9Y7M6D

5.01

3689830

P6Y10M24D 3.50

2097335

3.28

3368702

The following table summarizes the activities for our unvested restricted stock awards, RSUs, and PSUs for the six months ended June 30, 2026. Schedule of Unvested Restricted Stock Awards, Restricted Stock Units, and Performance Stock Units Activity Table <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 4in; border-collapse: collapse"> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid; text-align: center">Shares</td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Weighted Average Grant-Date Fair Value</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td style="width: 60%">Unvested at January 1</td> <td style="width: 1%"> </td> <td id="xdx_981_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumberUnvested_iS_pid_uShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zBdcevjGUCuf" style="width: 16%; text-align: right" title="Unvested at beginning, shares">1,722,147</td> <td style="width: 5%"> </td> <td style="width: 1%">$</td> <td id="xdx_988_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePriceUnvested_iS_pid_uUSDPShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zgYmpNSgAPK6" style="width: 16%; text-align: right" title="Unvested at beginning, price">2.99</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Granted</td> <td> </td> <td id="xdx_98C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrossUnvested_pid_uShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zqiYZE4p0ls5" style="text-align: right" title="Granted, shares">687,204</td> <td> </td> <td>$</td> <td id="xdx_988_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePriceUnvested_pid_uUSDPShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zWbrhDA3uRO2" style="text-align: right" title="Granted, price">4.81</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td>Vested</td> <td> </td> <td id="xdx_988_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedInPeriodGross_pid_uShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zflAJCka50P9" style="text-align: right" title="Vested, shares">(242,348</td> <td>)</td> <td>$</td> <td id="xdx_98E_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsVestedInPeriodWeightedAverageExercisePrice_pid_uUSDPShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_z4LOlVtWjewk" style="text-align: right" title="Vested, price">2.32</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Forfeited/canceled</td> <td> </td> <td id="xdx_98C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriodUnvested_pid_uShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zVwXfIDDNDG2" style="text-align: right" title="Forfeited/canceled, shares">(560,565</td> <td>)</td> <td>$</td> <td id="xdx_984_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePriceUnvested_pid_uUSDPShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zrRLrksf23ea" style="text-align: right" title="Forfeited/canceled, price">3.31</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td>Unvested at June 30</td> <td> </td> <td id="xdx_981_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumberUnvested_iE_pid_uShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zxr98Phczzjd" style="text-align: right" title="Unvested at end, shares">1,606,438</td> <td> </td> <td>$</td> <td id="xdx_981_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePriceUnvested_iE_pid_uUSDPShares_c20260101__20260630__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zz8QWxXbmgPh" style="text-align: right" title="Unvested at end, price">3.61</td> <td> </td></tr> </table>

1722147 2.99 687204 4.81 -242348 2.32 -560565 3.31 1606438 3.61

580000

52021

381978

4919605

NOTE 4 — DEBT OBLIGATIONS On March 8, 2024, the Company entered into a loan and security agreement with a large domestic banking institution, as lender, providing for a $<span id="xdx_90D_eus-gaap--LinesOfCreditCurrent_iI_c20240308__dei--LegalEntityAxis__custom--DomesticBankLenderMember__us-gaap--CreditFacilityAxis__us-gaap--RevolvingCreditFacilityMember_zPTTkAVAKh3d" title="Revolving credit facility">5,000,000 revolving credit facility and a $<span id="xdx_900_ecustom--LinesOfCreditCurrent1_iI_c20240308__dei--LegalEntityAxis__custom--DomesticBankLenderMember__us-gaap--CreditFacilityAxis__custom--TermLoanFacilityMember_zSIkamrPYT3c" title="Term loan facility">5,000,000 term loan facility. Borrowings are secured by a first-priority lien on substantially all of the assets of the Company, subject to customary exceptions. On March 30, 2026 the loan and security agreement was amended to extend the maturity of the $<span id="xdx_903_eus-gaap--LinesOfCreditCurrent_iI_c20260330__dei--LegalEntityAxis__custom--DomesticBankLenderMember__us-gaap--CreditFacilityAxis__us-gaap--RevolvingCreditFacilityMember_zKGJARQ4PDp1" title="Revolving credit facility">5,000,000 revolver from December 31, 2026 to March 30, 2028, and extends the interest-only period of the $<span id="xdx_905_ecustom--LinesOfCreditCurrent1_iI_c20260330__dei--LegalEntityAxis__custom--DomesticBankLenderMember__us-gaap--CreditFacilityAxis__custom--TermLoanFacilityMember_zpZfNi1YFHqk" title="Term loan facility">5,000,000 term loan from September 30, 2026 to June 30, 2027 with a possible further extension to December 31, 2027 upon the achievement of certain EBITDA milestones as set forth therein. The term loan maturity has been extended from December 1, 2028 to December 1, 2029. The amendment lowers the interest rate floor to 5.50% from 6.50% for the revolver and the term loan. The amendment removes the adjusted quick ratio covenant for both the term loan and the revolver. The adjusted quick ratio covenant for the revolver has been replaced with a remaining months liquidity covenant of at least twelve months, to be tested monthly beginning the first month the revolver is drawn on; provided, however, the Company will be in compliance if trailing three (3) month average Adjusted EBITDA (as defined in the revolver) is positive.

5000000

5000000 0.0550

NOTE 5 — LEASES We have finance and operating leases for our corporate office, vehicles, and certain office and computer equipment. The components of lease expense were as follows: Schedule of Lease Expense Components Table <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 7.5in; border-collapse: collapse"> <tr> <td style="vertical-align: bottom; width: 44%"> </td> <td style="vertical-align: bottom; width: 1%"> </td> <td style="vertical-align: bottom; width: 1%"> </td> <td id="xdx_49D_20260401__20260630_z49gIEDNE3Ll" style="vertical-align: bottom; width: 11%; text-align: center"> </td> <td style="vertical-align: bottom; width: 2%"> </td> <td style="vertical-align: bottom; width: 1%"> </td> <td id="xdx_490_20250401__20250630_zrfpn0W5RT48" style="vertical-align: bottom; width: 11%; text-align: center"> </td> <td style="vertical-align: bottom; width: 2%"> </td> <td style="vertical-align: bottom; width: 1%"> </td> <td id="xdx_49E_20260101__20260630_zIzjPQWpFsva" style="vertical-align: bottom; width: 11%; text-align: center"> </td> <td style="vertical-align: bottom; width: 2%"> </td> <td style="vertical-align: bottom; width: 1%"> </td> <td id="xdx_492_20250101__20250630_zCoWZITLZJvj" style="vertical-align: bottom; width: 11%; text-align: center"> </td> <td style="vertical-align: top; width: 1%"> </td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td colspan="5" style="vertical-align: bottom; text-align: center">Three Months Ended</td> <td style="vertical-align: bottom; text-align: center"> </td> <td colspan="5" style="vertical-align: bottom; text-align: center">Six Months Ended</td> <td style="vertical-align: top"> </td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td colspan="5" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center">June 30,</td> <td style="vertical-align: bottom; text-align: center"> </td> <td colspan="5" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center">June 30,</td> <td style="vertical-align: top"> </td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center">2026</td> <td style="vertical-align: bottom; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center">2025</td> <td style="vertical-align: bottom; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center">2026</td> <td style="vertical-align: bottom; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center">2025</td> <td style="vertical-align: top"> </td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: top"> </td></tr> <tr id="xdx_401_eus-gaap--OperatingLeaseCost_z8h05hS3Ovab" style="background-color: #E6E6E6"> <td style="vertical-align: bottom">Operating lease cost</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">$</td> <td style="vertical-align: bottom; text-align: right">133,495</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">$</td> <td style="vertical-align: bottom; text-align: right">132,502</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">$</td> <td style="vertical-align: bottom; text-align: right">266,990</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">$</td> <td style="vertical-align: bottom; text-align: right">257,587</td> <td style="vertical-align: top"> </td></tr> <tr id="xdx_402_eus-gaap--ShortTermLeaseCost_zf4D7v1hnRT5"> <td style="vertical-align: bottom">Short-term lease cost</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right">—</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right">2,700</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right">—</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right">6,086</td> <td style="vertical-align: top"> </td></tr> <tr id="xdx_40A_eus-gaap--LeaseCost_ztNWKcVUP7W1" style="background-color: #E6E6E6"> <td style="vertical-align: bottom">Total lease cost</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom">$</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right">133,495</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom">$</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right">135,202</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom">$</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right">266,990</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom">$</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right">263,673</td> <td style="vertical-align: top"> </td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: top"> </td></tr> <tr id="xdx_406_ecustom--FinanceLeaseCost1Abstract_iB_zbpP6rp9QPQe"> <td style="vertical-align: bottom">Finance lease cost:</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: top"> </td></tr> <tr id="xdx_40D_eus-gaap--FinanceLeaseRightOfUseAssetAmortization_i01_zySeyqRACE9a" style="background-color: #E6E6E6"> <td style="vertical-align: bottom; padding-left: 0.2in">Amortization of right-of-use assets</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">$</td> <td style="vertical-align: bottom; text-align: right">36,547</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">$</td> <td style="vertical-align: bottom; text-align: right">28,896</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">$</td> <td style="vertical-align: bottom; text-align: right">66,022</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">$</td> <td style="vertical-align: bottom; text-align: right">57,793</td> <td style="vertical-align: top"> </td></tr> <tr id="xdx_40E_eus-gaap--FinanceLeaseInterestExpense_i01_zFGK1bdR23se"> <td style="vertical-align: bottom; padding-left: 0.2in">Interest on lease liabilities</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right">2,578</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right">4,085</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right">4,713</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right">8,575</td> <td style="vertical-align: top"> </td></tr> <tr id="xdx_406_ecustom--FinanceLeaseCost_i01_zXIx9Tes6pe1" style="background-color: #E6E6E6"> <td style="vertical-align: bottom">Total finance lease cost</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom">$</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right">39,125</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom">$</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right">32,981</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom">$</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right">70,735</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom">$</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right">66,368</td> <td style="vertical-align: top"> </td></tr> </table> Supplemental cash flow information related to leases was as follows: Schedule of Supplemental Cash Flow Information Related to Leases Table <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 6.5in; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td style="text-align: center"> </td> <td id="xdx_49E_20260101__20260630_zbuH2vGN7OB" style="text-align: center"> </td> <td style="text-align: center"> </td> <td colspan="2" id="xdx_492_20250101__20250630_zvLELRyffyUf" style="text-align: center"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="5" style="text-align: center">Six Months Ended</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="5" style="border-bottom: black 1pt solid; text-align: center">June 30,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2026</td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2025</td> <td> </td></tr> <tr id="xdx_405_eus-gaap--CashFlowOperatingActivitiesLesseeAbstract_iB_ztydNE4CCdPe" style="vertical-align: bottom; background-color: #E6E6E6"> <td style="width: 72%; padding-left: 8.25pt; text-indent: -8.25pt">Cash paid for amounts included in the measurement of lease liabilities:</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 11%"> </td> <td style="width: 2%"> </td> <td style="width: 1%"> </td> <td style="width: 11%"> </td> <td style="width: 1%"> </td></tr> <tr id="xdx_403_eus-gaap--OperatingLeasePayments_i01_zy9flnmng98k" style="vertical-align: bottom"> <td>Operating cash flows from operating leases</td> <td> </td> <td>$</td> <td style="text-align: right">268,433</td> <td> </td> <td>$</td> <td style="text-align: right">261,117</td> <td> </td></tr> <tr id="xdx_402_eus-gaap--FinanceLeaseInterestPaymentOnLiability_i01_zWnsrDpUxlw1" style="vertical-align: bottom; background-color: #E6E6E6"> <td>Financing cash flows from finance leases</td> <td> </td> <td> </td> <td style="text-align: right">70,702</td> <td> </td> <td> </td> <td style="text-align: right">65,718</td> <td> </td></tr> <tr id="xdx_40C_eus-gaap--RightOfUseAssetObtainedInExchangeForFinanceLeaseLiability_i01_z9oqcjnwixwa" style="vertical-align: bottom"> <td>ROU assets obtained in exchange for new finance lease liabilities</td> <td> </td> <td> </td> <td style="text-align: right">82,383</td> <td> </td> <td> </td> <td style="text-align: right">—</td> <td> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 5in; border-collapse: collapse"> <tr> <td style="vertical-align: bottom; width: 55%"> </td> <td style="vertical-align: bottom; width: 2%"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; width: 19%; text-align: center">June 30, 2026</td> <td style="vertical-align: bottom; width: 3%"> </td> <td style="border-bottom: black 1pt solid; vertical-align: top; width: 19%; text-align: center">December 31, 2025</td> <td style="vertical-align: top; width: 2%"> </td></tr> <tr style="background-color: #E6E6E6"> <td style="vertical-align: bottom">Weighted Average Remaining Lease Term</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top"> </td> <td style="vertical-align: top"> </td></tr> <tr> <td style="vertical-align: bottom; padding-left: 0.2in">Operating leases</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right">6.08 Years</td> <td style="vertical-align: bottom"> </td> <td style="text-align: right">6.57 Years</td> <td style="vertical-align: top"> </td></tr> <tr style="background-color: #E6E6E6"> <td style="vertical-align: bottom; padding-left: 0.2in">Finance leases</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right">1.75 Years</td> <td style="vertical-align: bottom"> </td> <td style="text-align: right">1.67 Years</td> <td style="vertical-align: top"> </td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top"> </td></tr> <tr style="background-color: #E6E6E6"> <td style="vertical-align: bottom">Weighted Average Discount Rate</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top"> </td></tr> <tr> <td style="vertical-align: bottom; padding-left: 0.2in">Operating leases</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right">4.11%</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right">4.13%</td> <td style="vertical-align: top"> </td></tr> <tr style="background-color: #E6E6E6"> <td style="vertical-align: bottom; padding-left: 0.2in">Finance leases</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right">4.47%</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right">4.74%</td> <td style="vertical-align: top"> </td></tr> </table> Maturities of lease liabilities are as follows: Schedule of Maturities of Lease Liabilities Table <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 5.5in; border-collapse: collapse"> <tr> <td style="border-bottom: black 1pt solid; vertical-align: bottom">Year Ended December 31,</td> <td style="vertical-align: top"> </td> <td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center">Operating Leases</td> <td style="vertical-align: bottom"> </td> <td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center">Finance Leases</td> <td style="vertical-align: bottom"> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td style="width: 52%">Remainder of 2026</td> <td style="width: 3%"> </td> <td style="width: 2%">$</td> <td id="xdx_98F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_c20260630_z7hzwS3Kval3" style="width: 18%; text-align: right" title="2026 - Operating Leases">270,896</td> <td style="width: 3%"> </td> <td style="width: 2%">$</td> <td id="xdx_98C_eus-gaap--FinanceLeaseLiabilityPaymentsDueNextTwelveMonths_iI_c20260630_z0k09jCWgeSe" style="width: 18%; text-align: right" title="2026 - Finance Leases">80,669</td> <td style="width: 2%"> </td></tr> <tr> <td style="vertical-align: bottom">2027</td> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom"> </td> <td id="xdx_988_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_c20260630_zKYlQUyVFzW5" style="vertical-align: bottom; text-align: right" title="2027 - Operating Leases">554,475</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td id="xdx_98B_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearTwo_iI_c20260630_zkXRKKWp4fp6" style="vertical-align: bottom; text-align: right" title="2027 - Finance Leases">104,096</td> <td style="vertical-align: bottom"> </td></tr> <tr style="background-color: #E6E6E6"> <td style="vertical-align: bottom">2028</td> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom"> </td> <td id="xdx_985_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_c20260630_zxmx9BnAS6Bk" style="vertical-align: bottom; text-align: right" title="2028 - Operating Leases">557,286</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td id="xdx_980_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearThree_iI_c20260630_zp5NYtefMVHg" style="vertical-align: bottom; text-align: right" title="2028 - Finance Leases">36,079</td> <td style="vertical-align: bottom"> </td></tr> <tr> <td style="vertical-align: bottom">2029</td> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom"> </td> <td id="xdx_984_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_c20260630_z75ObQZ4iCIc" style="vertical-align: bottom; text-align: right" title="2029 - Operating Leases">553,759</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td id="xdx_989_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearFour_iI_c20260630_ze8hdSpb8TV" style="vertical-align: bottom; text-align: right" title="2029 - Finance Leases">7,475</td> <td style="vertical-align: bottom"> </td></tr> <tr style="background-color: #E6E6E6"> <td style="vertical-align: bottom">2030</td> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom"> </td> <td id="xdx_983_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFive_iI_c20260630_z84GWnFSeGOj" style="vertical-align: bottom; text-align: right" title="2030 - Operating Leases">568,217</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td id="xdx_98A_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearFive_iI_c20260630_zksRmTWOV71i" style="vertical-align: bottom; text-align: right" title="2030 - Finance Leases">—</td> <td style="vertical-align: bottom"> </td></tr> <tr> <td style="vertical-align: bottom">Thereafter</td> <td style="vertical-align: top"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td id="xdx_986_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive_iI_c20260630_zSzIJoeDvdV6" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right" title="Thereafter - Operating Leases">986,164</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td id="xdx_982_eus-gaap--FinanceLeaseLiabilityPaymentsDueAfterYearFive_iI_c20260630_zCohhP5ZHyTd" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right" title="Thereafter - Finance Leases">—</td> <td style="vertical-align: bottom"> </td></tr> <tr style="background-color: #E6E6E6"> <td style="vertical-align: bottom">Total undiscounted lease payments</td> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom"> </td> <td id="xdx_981_ecustom--LesseeOperatingLeaseLiabilityPaymentsDueTotal_iI_c20260630_zYmA4iYwmCWl" style="vertical-align: bottom; text-align: right" title="Total undiscounted lease payments - Operating Leases">3,490,797</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td id="xdx_983_ecustom--LesseeFinancingLeaseLeaseLiabilityPaymentsDueTotal_iI_c20260630_zZ6uTSIKtm88" style="vertical-align: bottom; text-align: right" title="Total undiscounted lease payments - Finance Leases">228,319</td> <td style="vertical-align: bottom"> </td></tr> <tr> <td style="vertical-align: bottom; padding-left: 16.45pt">Less: imputed interest</td> <td style="vertical-align: top"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td id="xdx_98E_ecustom--LesseeOperatingLeaseImputedInterest_iNI_di_c20260630_zU6RiSPvTM7i" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right" title="Less: imputed interest - Operating Leases">(401,359</td> <td style="vertical-align: bottom">)</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td id="xdx_981_ecustom--LesseeFinancingLeaseImputedInterest_iNI_di_c20260630_zHf90Z1l8dvb" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right" title="Less: imputed interest - Finance Leases">(8,318</td> <td style="vertical-align: bottom">)</td></tr> <tr style="background-color: #E6E6E6"> <td style="vertical-align: bottom">Total lease liabilities</td> <td style="vertical-align: top"> </td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom">$</td> <td id="xdx_98C_eus-gaap--OperatingLeaseLiability_iI_c20260630_zI8pxJlZN8zj" style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right" title="Total lease liabilities - Operating Leases">3,089,438</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom">$</td> <td id="xdx_984_eus-gaap--FinanceLeaseLiability_iI_c20260630_zAfLEkjaW2Sb" style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right" title="Total lease liabilities - Finance Leases">220,001</td> <td style="vertical-align: bottom"> </td></tr> </table>

The components of lease expense were as follows: Schedule of Lease Expense Components Table <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 7.5in; border-collapse: collapse"> <tr> <td style="vertical-align: bottom; width: 44%"> </td> <td style="vertical-align: bottom; width: 1%"> </td> <td style="vertical-align: bottom; width: 1%"> </td> <td id="xdx_49D_20260401__20260630_z49gIEDNE3Ll" style="vertical-align: bottom; width: 11%; text-align: center"> </td> <td style="vertical-align: bottom; width: 2%"> </td> <td style="vertical-align: bottom; width: 1%"> </td> <td id="xdx_490_20250401__20250630_zrfpn0W5RT48" style="vertical-align: bottom; width: 11%; text-align: center"> </td> <td style="vertical-align: bottom; width: 2%"> </td> <td style="vertical-align: bottom; width: 1%"> </td> <td id="xdx_49E_20260101__20260630_zIzjPQWpFsva" style="vertical-align: bottom; width: 11%; text-align: center"> </td> <td style="vertical-align: bottom; width: 2%"> </td> <td style="vertical-align: bottom; width: 1%"> </td> <td id="xdx_492_20250101__20250630_zCoWZITLZJvj" style="vertical-align: bottom; width: 11%; text-align: center"> </td> <td style="vertical-align: top; width: 1%"> </td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td colspan="5" style="vertical-align: bottom; text-align: center">Three Months Ended</td> <td style="vertical-align: bottom; text-align: center"> </td> <td colspan="5" style="vertical-align: bottom; text-align: center">Six Months Ended</td> <td style="vertical-align: top"> </td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td colspan="5" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center">June 30,</td> <td style="vertical-align: bottom; text-align: center"> </td> <td colspan="5" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center">June 30,</td> <td style="vertical-align: top"> </td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center">2026</td> <td style="vertical-align: bottom; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center">2025</td> <td style="vertical-align: bottom; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center">2026</td> <td style="vertical-align: bottom; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center">2025</td> <td style="vertical-align: top"> </td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: top"> </td></tr> <tr id="xdx_401_eus-gaap--OperatingLeaseCost_z8h05hS3Ovab" style="background-color: #E6E6E6"> <td style="vertical-align: bottom">Operating lease cost</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">$</td> <td style="vertical-align: bottom; text-align: right">133,495</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">$</td> <td style="vertical-align: bottom; text-align: right">132,502</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">$</td> <td style="vertical-align: bottom; text-align: right">266,990</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">$</td> <td style="vertical-align: bottom; text-align: right">257,587</td> <td style="vertical-align: top"> </td></tr> <tr id="xdx_402_eus-gaap--ShortTermLeaseCost_zf4D7v1hnRT5"> <td style="vertical-align: bottom">Short-term lease cost</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right">—</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right">2,700</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right">—</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right">6,086</td> <td style="vertical-align: top"> </td></tr> <tr id="xdx_40A_eus-gaap--LeaseCost_ztNWKcVUP7W1" style="background-color: #E6E6E6"> <td style="vertical-align: bottom">Total lease cost</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom">$</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right">133,495</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom">$</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right">135,202</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom">$</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right">266,990</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom">$</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right">263,673</td> <td style="vertical-align: top"> </td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: top"> </td></tr> <tr id="xdx_406_ecustom--FinanceLeaseCost1Abstract_iB_zbpP6rp9QPQe"> <td style="vertical-align: bottom">Finance lease cost:</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: top"> </td></tr> <tr id="xdx_40D_eus-gaap--FinanceLeaseRightOfUseAssetAmortization_i01_zySeyqRACE9a" style="background-color: #E6E6E6"> <td style="vertical-align: bottom; padding-left: 0.2in">Amortization of right-of-use assets</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">$</td> <td style="vertical-align: bottom; text-align: right">36,547</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">$</td> <td style="vertical-align: bottom; text-align: right">28,896</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">$</td> <td style="vertical-align: bottom; text-align: right">66,022</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom">$</td> <td style="vertical-align: bottom; text-align: right">57,793</td> <td style="vertical-align: top"> </td></tr> <tr id="xdx_40E_eus-gaap--FinanceLeaseInterestExpense_i01_zFGK1bdR23se"> <td style="vertical-align: bottom; padding-left: 0.2in">Interest on lease liabilities</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right">2,578</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right">4,085</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right">4,713</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right">8,575</td> <td style="vertical-align: top"> </td></tr> <tr id="xdx_406_ecustom--FinanceLeaseCost_i01_zXIx9Tes6pe1" style="background-color: #E6E6E6"> <td style="vertical-align: bottom">Total finance lease cost</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom">$</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right">39,125</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom">$</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right">32,981</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom">$</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right">70,735</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom">$</td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right">66,368</td> <td style="vertical-align: top"> </td></tr> </table>

133495

132502

266990

257587

2700

6086

133495

135202

266990

263673

36547

28896

66022

57793

2578

4085

4713

8575

39125 32981 70735 66368

Supplemental cash flow information related to leases was as follows: Schedule of Supplemental Cash Flow Information Related to Leases Table <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 6.5in; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td style="text-align: center"> </td> <td id="xdx_49E_20260101__20260630_zbuH2vGN7OB" style="text-align: center"> </td> <td style="text-align: center"> </td> <td colspan="2" id="xdx_492_20250101__20250630_zvLELRyffyUf" style="text-align: center"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="5" style="text-align: center">Six Months Ended</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="5" style="border-bottom: black 1pt solid; text-align: center">June 30,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2026</td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2025</td> <td> </td></tr> <tr id="xdx_405_eus-gaap--CashFlowOperatingActivitiesLesseeAbstract_iB_ztydNE4CCdPe" style="vertical-align: bottom; background-color: #E6E6E6"> <td style="width: 72%; padding-left: 8.25pt; text-indent: -8.25pt">Cash paid for amounts included in the measurement of lease liabilities:</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 11%"> </td> <td style="width: 2%"> </td> <td style="width: 1%"> </td> <td style="width: 11%"> </td> <td style="width: 1%"> </td></tr> <tr id="xdx_403_eus-gaap--OperatingLeasePayments_i01_zy9flnmng98k" style="vertical-align: bottom"> <td>Operating cash flows from operating leases</td> <td> </td> <td>$</td> <td style="text-align: right">268,433</td> <td> </td> <td>$</td> <td style="text-align: right">261,117</td> <td> </td></tr> <tr id="xdx_402_eus-gaap--FinanceLeaseInterestPaymentOnLiability_i01_zWnsrDpUxlw1" style="vertical-align: bottom; background-color: #E6E6E6"> <td>Financing cash flows from finance leases</td> <td> </td> <td> </td> <td style="text-align: right">70,702</td> <td> </td> <td> </td> <td style="text-align: right">65,718</td> <td> </td></tr> <tr id="xdx_40C_eus-gaap--RightOfUseAssetObtainedInExchangeForFinanceLeaseLiability_i01_z9oqcjnwixwa" style="vertical-align: bottom"> <td>ROU assets obtained in exchange for new finance lease liabilities</td> <td> </td> <td> </td> <td style="text-align: right">82,383</td> <td> </td> <td> </td> <td style="text-align: right">—</td> <td> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 5in; border-collapse: collapse"> <tr> <td style="vertical-align: bottom; width: 55%"> </td> <td style="vertical-align: bottom; width: 2%"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom; width: 19%; text-align: center">June 30, 2026</td> <td style="vertical-align: bottom; width: 3%"> </td> <td style="border-bottom: black 1pt solid; vertical-align: top; width: 19%; text-align: center">December 31, 2025</td> <td style="vertical-align: top; width: 2%"> </td></tr> <tr style="background-color: #E6E6E6"> <td style="vertical-align: bottom">Weighted Average Remaining Lease Term</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top"> </td> <td style="vertical-align: top"> </td></tr> <tr> <td style="vertical-align: bottom; padding-left: 0.2in">Operating leases</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right">6.08 Years</td> <td style="vertical-align: bottom"> </td> <td style="text-align: right">6.57 Years</td> <td style="vertical-align: top"> </td></tr> <tr style="background-color: #E6E6E6"> <td style="vertical-align: bottom; padding-left: 0.2in">Finance leases</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right">1.75 Years</td> <td style="vertical-align: bottom"> </td> <td style="text-align: right">1.67 Years</td> <td style="vertical-align: top"> </td></tr> <tr> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top"> </td></tr> <tr style="background-color: #E6E6E6"> <td style="vertical-align: bottom">Weighted Average Discount Rate</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: top"> </td></tr> <tr> <td style="vertical-align: bottom; padding-left: 0.2in">Operating leases</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right">4.11%</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right">4.13%</td> <td style="vertical-align: top"> </td></tr> <tr style="background-color: #E6E6E6"> <td style="vertical-align: bottom; padding-left: 0.2in">Finance leases</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right">4.47%</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom; text-align: right">4.74%</td> <td style="vertical-align: top"> </td></tr> </table>

268433

261117

70702

65718

82383

P6Y29D

P6Y6M25D

P1Y9M

P1Y8M1D

0.0411

0.0413

0.0447

0.0474

Maturities of lease liabilities are as follows: Schedule of Maturities of Lease Liabilities Table <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 5.5in; border-collapse: collapse"> <tr> <td style="border-bottom: black 1pt solid; vertical-align: bottom">Year Ended December 31,</td> <td style="vertical-align: top"> </td> <td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center">Operating Leases</td> <td style="vertical-align: bottom"> </td> <td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center">Finance Leases</td> <td style="vertical-align: bottom"> </td></tr> <tr style="vertical-align: bottom; background-color: #E6E6E6"> <td style="width: 52%">Remainder of 2026</td> <td style="width: 3%"> </td> <td style="width: 2%">$</td> <td id="xdx_98F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_c20260630_z7hzwS3Kval3" style="width: 18%; text-align: right" title="2026 - Operating Leases">270,896</td> <td style="width: 3%"> </td> <td style="width: 2%">$</td> <td id="xdx_98C_eus-gaap--FinanceLeaseLiabilityPaymentsDueNextTwelveMonths_iI_c20260630_z0k09jCWgeSe" style="width: 18%; text-align: right" title="2026 - Finance Leases">80,669</td> <td style="width: 2%"> </td></tr> <tr> <td style="vertical-align: bottom">2027</td> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom"> </td> <td id="xdx_988_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_c20260630_zKYlQUyVFzW5" style="vertical-align: bottom; text-align: right" title="2027 - Operating Leases">554,475</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td id="xdx_98B_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearTwo_iI_c20260630_zkXRKKWp4fp6" style="vertical-align: bottom; text-align: right" title="2027 - Finance Leases">104,096</td> <td style="vertical-align: bottom"> </td></tr> <tr style="background-color: #E6E6E6"> <td style="vertical-align: bottom">2028</td> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom"> </td> <td id="xdx_985_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_c20260630_zxmx9BnAS6Bk" style="vertical-align: bottom; text-align: right" title="2028 - Operating Leases">557,286</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td id="xdx_980_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearThree_iI_c20260630_zp5NYtefMVHg" style="vertical-align: bottom; text-align: right" title="2028 - Finance Leases">36,079</td> <td style="vertical-align: bottom"> </td></tr> <tr> <td style="vertical-align: bottom">2029</td> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom"> </td> <td id="xdx_984_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_c20260630_z75ObQZ4iCIc" style="vertical-align: bottom; text-align: right" title="2029 - Operating Leases">553,759</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td id="xdx_989_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearFour_iI_c20260630_ze8hdSpb8TV" style="vertical-align: bottom; text-align: right" title="2029 - Finance Leases">7,475</td> <td style="vertical-align: bottom"> </td></tr> <tr style="background-color: #E6E6E6"> <td style="vertical-align: bottom">2030</td> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom"> </td> <td id="xdx_983_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFive_iI_c20260630_z84GWnFSeGOj" style="vertical-align: bottom; text-align: right" title="2030 - Operating Leases">568,217</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td id="xdx_98A_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearFive_iI_c20260630_zksRmTWOV71i" style="vertical-align: bottom; text-align: right" title="2030 - Finance Leases">—</td> <td style="vertical-align: bottom"> </td></tr> <tr> <td style="vertical-align: bottom">Thereafter</td> <td style="vertical-align: top"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td id="xdx_986_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive_iI_c20260630_zSzIJoeDvdV6" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right" title="Thereafter - Operating Leases">986,164</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td id="xdx_982_eus-gaap--FinanceLeaseLiabilityPaymentsDueAfterYearFive_iI_c20260630_zCohhP5ZHyTd" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right" title="Thereafter - Finance Leases">—</td> <td style="vertical-align: bottom"> </td></tr> <tr style="background-color: #E6E6E6"> <td style="vertical-align: bottom">Total undiscounted lease payments</td> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom"> </td> <td id="xdx_981_ecustom--LesseeOperatingLeaseLiabilityPaymentsDueTotal_iI_c20260630_zYmA4iYwmCWl" style="vertical-align: bottom; text-align: right" title="Total undiscounted lease payments - Operating Leases">3,490,797</td> <td style="vertical-align: bottom"> </td> <td style="vertical-align: bottom"> </td> <td id="xdx_983_ecustom--LesseeFinancingLeaseLeaseLiabilityPaymentsDueTotal_iI_c20260630_zZ6uTSIKtm88" style="vertical-align: bottom; text-align: right" title="Total undiscounted lease payments - Finance Leases">228,319</td> <td style="vertical-align: bottom"> </td></tr> <tr> <td style="vertical-align: bottom; padding-left: 16.45pt">Less: imputed interest</td> <td style="vertical-align: top"> </td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td id="xdx_98E_ecustom--LesseeOperatingLeaseImputedInterest_iNI_di_c20260630_zU6RiSPvTM7i" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right" title="Less: imputed interest - Operating Leases">(401,359</td> <td style="vertical-align: bottom">)</td> <td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td> <td id="xdx_981_ecustom--LesseeFinancingLeaseImputedInterest_iNI_di_c20260630_zHf90Z1l8dvb" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right" title="Less: imputed interest - Finance Leases">(8,318</td> <td style="vertical-align: bottom">)</td></tr> <tr style="background-color: #E6E6E6"> <td style="vertical-align: bottom">Total lease liabilities</td> <td style="vertical-align: top"> </td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom">$</td> <td id="xdx_98C_eus-gaap--OperatingLeaseLiability_iI_c20260630_zI8pxJlZN8zj" style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right" title="Total lease liabilities - Operating Leases">3,089,438</td> <td style="vertical-align: bottom"> </td> <td style="border-bottom: black 2.25pt double; vertical-align: bottom">$</td> <td id="xdx_984_eus-gaap--FinanceLeaseLiability_iI_c20260630_zAfLEkjaW2Sb" style="border-bottom: black 2.25pt double; vertical-align: bottom; text-align: right" title="Total lease liabilities - Finance Leases">220,001</td> <td style="vertical-align: bottom"> </td></tr> </table>

270896

80669

554475

104096

557286

36079

553759

7475

568217

986164

3490797 228319 401359 8318

3089438

220001

NOTE 6 — INCOME TAXES For interim income tax reporting, the Company estimates its annual effective tax rate and applies it to fiscal year-to-date pretax loss, excluding unusual or infrequently occurring discrete items. Tax jurisdictions with losses for which tax benefits cannot be realized are excluded. The Company’s reported income tax expense as of June 30, 2026 and 2025 is lower than the statutory tax rate at 21% primarily due to the valuation allowance established against the net deferred tax assets. We evaluate our deferred tax assets to determine if they are more likely than not to be realized by assessing both positive and negative evidence in accordance with ASC Topic 740, Income Taxes. After considering our cumulative pretax loss (the three-year period ended with the current year), as well as analyzing all available evidence, we maintained the full valuation allowance against our net deferred tax assets. As we continue to assess the realizability of our deferred tax assets, reported pretax income and new evidence may result in a partial or full reduction of the valuation allowance in future periods. The Company files income tax returns in the U.S. federal jurisdiction and in various state jurisdictions. Income tax returns for years prior to fiscal 2022 are no longer subject to examination by tax authorities.

0.21

NOTE 7 — COMMITMENTS AND CONTINGENCIES LEGAL PROCEEDINGS The Company has been and may again become involved in legal proceedings, claims and litigation arising in the ordinary course of business. The Company is not presently a party to any litigation or other legal proceedings that is believed to be material to its financial condition.

NOTE 8 — SUBSEQUENT EVENTS On August 5, 2026, the Company’s Board of Directors approved an increase in its non-employee director compensation, effective October 1, 2026.